Changpeng Zhao (aka CZ) called India unviable for crypto trading because of high taxes.
The point was made yesterday during a speech at TechCrunch Sessions: Crypto 2022 in Miami.
The problem is not the income tax but the 1% commission on every cryptocurrency transaction (including exchanges). And that is prohibitively expensive, according to Binance's CEO. Turning directly to the quote, however:
"If you're going to charge a 1% tax on every transaction, there's not going to be that many transactions... I don't think India is a very favorable environment for cryptocurrencies... A user can trade 50 times a day, and he will lose 70% of his money. There won't be any volume for an exchange like the order book. So we don't see a viable business in India today."
In addition to the 1% transaction tax, there is a 30% income tax on all cryptocurrency transfers. In addition, regulatory issues require stricter KYC compliance and a built-in security mechanism.
CZ concluded that it has not completely abandoned India. Binance is working with industry associations and influencers to bring logic to India's tax policy for the crypto sector.
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