WazirX Co-Founders Move HQ to Dubai Amid Indian Crypto Taxation

WazirX Background

Co-founders of WazirX Dubai, including CEO Siddharth Menon, have shifted their headquarters from India to Dubai. This move comes after India imposed a 30% tax on virtual digital assets (VDAs) and a 1% tax-deductible at source, leading to a decline in trading volumes in crypto exchanges.

WazirX Dubai Complies with Regulations

The chief executive of WazirX Dubai has confirmed that the crypto platform is compliant with all relevant legislation. Though WazirX maintains offices in Mumbai and Bengaluru, co-founders Nischal Shetty and Siddharth Menon have reportedly relocated to Dubai with their families. However, WazirX’s CTO Sameer Mhatre is still based in India, and the entire staff now operates remotely.

Remote-First Organization

According to a WazirX spokesperson, the exchange is a remote-first organization, with staff in over 70 locations. All employees, except those required to travel on behalf of the company, can work from wherever they prefer. The Mumbai and Bengaluru offices will continue to operate as usual.

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Indian Government’s Crypto Tax

India’s decision to impose a 30% tax on VDAs and a 1% tax deduction at source has resulted in a significant drop in trade volumes on crypto exchanges. Additionally, the government has announced that losses on VDAs will not be deducted from earnings, and crypto mining will also be taxed, causing outrage among industry participants.

WazirX’s Compliance and Criticisms of Crypto Taxes

WazirX CEO Nischal Shetty has been vocal on social media, especially Twitter, criticizing the Indian government’s approach to crypto taxes. He believes the measures will harm domestic businesses and result in a wealth drain. When accused of violating Foreign Exchange Management Act requirements for crypto dealings worth Rs 2,790.74 crore, Shetty received a show-cause notice from India’s Enforcement Directorate in June 2022. However, he maintains that WazirX complies with all relevant regulations.

Collaboration on Shardeum Blockchain Project

Shetty has also collaborated with US-based crypto inventor Omar Sayed on the Shardeum blockchain project. Shardeum is a layer 1 blockchain solution that addresses scalability and high-volume transactions in cryptocurrencies.

Dubai Attracts Crypto Developers and Influencers

Since India imposed tariffs on cryptocurrency transactions, Dubai has become a haven for crypto developers and influencers. Dubai has no income tax and has established a regulatory body for virtual digital assets trading, attracting crypto and web3 start-ups from India.