After RBI announcing a ban on crypto activities, Crypto Exchanges are moving abroad
Named Cryptocurrency Exchanges of India seek to change their headquarters from India to other countries. The crypto exchanges are on a look to shift abroad after RBI’s instructions to all banks: Do not support any activity related cryptocurrency.
Being proactive to this, Indian crypto exchanges namely BTCX India, ZebPay, CoinSecure, Unicoin, BuyUcoin and many more are on a move to shift their head offices to abroad so as to keep away from Indian Jurisdiction. Apart from RBI, crypto exchanges are also concerned about Income Tax Department, enforcement directorates and other indirect tax regulatory bodies. After the implementation of GST (goods and services Tax) all over India, Cryptocurrency Exchanges were also asked by the indirect tax authority of India to ascertain the rate of GST during an investigation launched last year. Also, the VAT (Value Added Tax) authority and Sales Tax Departments conducted an investigation, specifically on the taxability of Bitcoin.
In consultation with experts, cryptocurrency exchanges have found that shifting their headquarters will then also allow Indian cryptocurrency enthusiasts to trade but they will escape themselves from the Indian Taxes. This would be a beneficial deal for crypto exchanges.
But, on the other hand, the experts warned strongly that there are only two options left for cryptocurrency exchanges. 1. Shut the cryptocurrency exchanges. 2. Shift their headquarters to other countries where there are flexible norms set by financial and regulatory authorities. Cryptocurrency exchanges believe that such countries are Singapore, Belarus and Delaware. A few of the cryptocurrency exchanges have started to build various tax structures by having the discussions with their advisors.
Seeing this an opportunity to shift the cryptocurrency exchanges’ head office to abroad, CEO of BuyUcoin, Shivam Thakral said that now their company’s operation will not only calling cryptocurrency enthusiast from India but also from other countries. Hence, their operations will expand to the global level. From now they won’t be dealing in fiat currency and will shift to the country where they can open bank accounts of their customers.
The cryptocurrency exchanges have to shift their headquarters as soon as possible so that none of the existing Indian customers will shut their current account off fearing from RBI’s new norms. That might become a great loss to the crypto exchanges. The Crypto exchanges must open their existing clients’ account in the country where the respective exchanges are shifting before shutting down operations in India. As, after the RBI banning of crypto activities, many investors are selling their cryptocurrencies.
