WazirX, one of India’s major cryptocurrency exchanges, is seeking to relocate its headquarters to Dubai, according to sources on Tuesday. Nischal Shetty and Siddharth Menon, the exchange’s co-founders, have already made the switch.
The move follows the Indian government’s imposition of a 30% tax on digital assets, as well as a 1% tax on all crypto transactions. Several Indian cryptocurrency players, including Shetty, have warned that the action will drive away investment from the country.
WazirX is one of India’s major cryptocurrency exchanges, with daily volumes exceeding $25 million. However, it has also come under attack as a result of recent measures by the Indian government to restrict crypto usage.
WazirX’s founders have already arrived in Dubai.
According to sources close to the situation, Shetty and Menon have already relocated to Dubai with their families. Sameer Mhatre, co-founder and chief technology officer, continues to operate from India.
According to the journal, the majority of WazirX’s employees works remotely. Binance acquired the exchange, which was created in 2018, in 2019. It has over 10 million active users and accounts for the majority of the Indian market.
WazirX isn’t the only cryptocurrency company to look for greater opportunities abroad. Polygon founder Sandeep Nailwal relocated to Dubai in 2019. Naiwal recently chastised the Indian government for causing a “crazy” crypto brain drain through ambiguous policies.
With its recent tax order, the Indian government looks to be echoing the Reserve Bank’s anti-crypto attitude. Finance Minister Nirmala Sitharaman has slammed cryptocurrency for its potential for money laundering and terrorism financing.
Is Dubai going to be the next crypto hub?
This year, Dubai has drawn a spate of cryptocurrency investors after implementing legislation that appears to be beneficial to the industry. Binance and FTX, who have both been granted licenses to operate in the city, have the potential to turn the port into a significant crypto hub.
Binance has even contemplated establishing its worldwide headquarters in Dubai.
Dubai passed its first law governing virtual assets in March. The law established a commission to oversee the space, as well as proposals to establish economic zones for the development of cryptocurrency.