UAE, Singapore Are Turning Into Crypto Hubs With Indian Exchanges Moving Base
Uncertainties over cryptocurrency regulation in India could well be a boon for countries looking to broaden their crypto network. Singapore and the United Arab Emirates, in particular, appear to be on the path to turning into the new crypto hubs of the world with several Indian exchanges looking to move base from India. The scramble for cryptocurrency exchanges to shift base gained pace after the Central government's 30 per cent tax proposal on all virtual property. And, making most of the regulatory uncertainties are countries like Dubai and Singapore that are doing their best to woo crypto buyers.
As per a report by Bloomberg, by the end of the first quarter this year, the UAE is all set to issue federal licenses for virtual asset service providers. By doing so, it aims to encourage some crypto giants from across the world, India included.
Binance, which is considered one of the largest cryptocurrency exchanges in terms of daily trading volume, also held discussions with UAE regulators for a potential headquarters in the country. As one of the world's fastest-growing crypto markets, UAE is the third in the Middle East after Turkey and Lebanon. In late December 2021, Binance struck an agreement with the Dubai World Trade Centre Authority (DWTCA), which is establishing an international virtual asset ecosystem. The agreement makes Binance one of the first cryptocurrency exchanges to join the DWTCA's new crypto centre.
Meanwhile, Singapore also has its eyes set on crypto exchanges. As per the report, the Monetary Authority of Singapore, which regulates banks and financial firms, is also working on a “strong regulation” for cryptocurrency. And Singapore has already caught the attention of Binance Holdings, to set up a base in the country.
And, the change has begun. Ethereum scaling platform Polygon has shifted most of its operations to Dubai and USA. It was originally located in Bengaluru. During the budget announcement this month, Finance Minister Nirmala Sitharaman announced that earnings from cryptocurrencies and non-fungible tokens (NFTs) will be placed under India's highest tax band of 30 per cent. This coupled with ambiguity around crypto regulations could help Dubai and Singapore be viewed as safer bets where the rules are clearer and easier.
