Blockchain News: It is reported that a few days after the Bank of India (RBI) banned cryptocurrency transactions, cryptocurrency exchanges including Zebpay, Unocoin, CoinSecure, BuyUcoin and BTCX India are seeking to move their headquarters. To countries like Singapore, Delaware or Belarus. Many exchanges have contacted their respective consultants and are studying the relevant tax structures in each country.
According to previous news, on April 5, the Central Bank of India (RBI) announced that it would ban banks from providing any services to individuals or business entities that process or settle virtual currency. This statement has caused many investors to flock to sell their cryptocurrency. At present, most cryptocurrency exchanges are concerned that the Bank of India’s statement may have a fatal blow to the company and they will face huge operational difficulties in the country.
Tax experts say there may be only two options for these exchanges – closing the business or moving to any other jurisdiction. Even so, Indian investors are still likely to continue investing in the platform through other means. These exchanges are also exploring how to launch different products to attract Indian customers to purchase cryptocurrencies after the mobile base.
The volume of transactions in India is bound to decline, but exchanges that have been stationed in India may avoid Indian taxation because they will not set up permanent institutions in India after the migration.
In this regard, BuyUcoin Exchange CEO Shivam Thakra said that BuyUcoin must move the company to some foreign countries that allow bank accounts to be opened, and BuyUcoin will not trade in legal tender. It will deploy operations on a global scale, not just operating in India. "And if they move their headquarters elsewhere, the relevant laws in India will no longer apply to them.
Sidharth Sogani, founder of Block Next SoluTIons (an ostrich blockchain note: a chain of consulting firms that help individuals and companies invest in cryptocurrencies), says most Indian exchanges are based in Singapore and the US. Digital currency-related companies such as exchanges must move overseas, but investors can still access their websites, access their exchanges, and do encrypted transactions.
But before that, these exchanges will try to settle the accounts of existing customers before closing their operations in India.
At present, for the exchange, not only the RBI, but also the executive board, the income tax department and the indirect tax authorities are having trouble developing it. In December last year, the Indirect Taxation Bureau conducted an investigation into the Indian Bitcoin exchange to determine the GST rate that could be imposed on it.
The Sales Tax Department and the Value Added Tax Department also conducted an investigation into the taxability of Bitcoin in the most recent fiscal year.
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