Crackdown on Crypto Businesses by RBI Kept it Overseas

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The crackdown on cryptocurrencies which was started by RBI was due to a comprised catalyst for the migration of numerous Indian cryptocurrency companies and ICOs who seeks favorable regulatory jurisdictions for this.

RBI has directed not to give any kind of financial services to any businesses who want to deal in cryptocurrencies, and this decision has left many of India’s crypto companies to go to overseas and set up their base there.

Also Read: Indian Financial Firm Will Not Deal With Cryptocurrency

A report which is published on Factor Daily says, Estonia has emerged as a popular destination among the Indian cryptocurrency entrepreneurs. This was launched way back in the year 2014, and Estonia’s e-residency programme helps in providing a simple avenue through the companies. They all are based in the eastern-European nation. Estonia used to provide favorable taxation and regulatory apparatus for the cryptocurrency and blockchain companies.

The founder of Indium, Nilesh Trivedi, is currently completing his e-residency application for Estonia Mr.Trivedi states and this would “ideally like to diversify from India given the way things usually move concerning cryptocurrency and the blockchain space. He added by saying, they are very much uncertain.

According to Mr. Trivedi, he said, “e-residency will just cost me 100 Euros for three years, and I can renew it again after that,” adding that “the tax regime there is good.” Mr. Trivedi also notes that “Being registered [in Estonia] will also allow [him] to offer other services and conduct business in the EU.”

Also Read: Banks and the Cryptocurrency Industry Scenario in Asia

Joel John, who is an analyst at Outlier Ventures, has asked RBI’s prohibitive policy regarding the cryptocurrency companies which risks in creating the brain-drain among India’s cryptocurrency and blockchain.

As per Mr. John, “We are having talented people and companies from the blockchain space move out of India. There are enough countries out there that realize the importance and want to take the lead in the blockchain ecosystem. Companies moving abroad are not a new trend, but the regulatory complexities faced by blockchain companies have accelerated.”

There are some jurisdictions which are said to be the hubs of this innovation within the cryptocurrency and finance sectors which are seen as the popular destinations among India’s crypto industry. These places are Switzerland, Singapore, Japan and the United Kingdom.

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