Is Dubai likely to emerge as a new hub for Indian crypto players?

WazirX co-founders Nischal Shetty and Siddharth Menon have moved base to Dubai as reported by Business Today on Tuesday, and this move has shed light on the issue of ‘Crypto Brain Drain’ in India triggered by the introduction of the recent crypto tax regime by the Indian government.

As previously reported by Business Today, Dubai is gearing up to become the crypto capital of the world. The emirate has been fostering the expansion of the crypto sector by building a regulatory framework to attract crypto firms and expertise as regional economic competition heats up.

And as it turns out Indian founders of Web3 and crypto startups are capitalising on this. Pratik Gauri, founder and CEO of 5ire blockchain, which is headquartered in Dubai, told Business Today earlier this month, “The laws in Dubai are very kind to crypto and Web3 startups.  The VARA and Virtual Digital Asset Law helps in facilitating crypto businesses and that is one of the many reasons we chose Dubai.”

Last month, Sheikh Mohammed Bin Rashid, Dubai's ruler, stated that the emirate had approved its first law regulating virtual assets and had also established an independent regulator to oversee the cryptocurrency ecosystem.

The Dubai Virtual Asset Regulation Law was passed to establish Dubai and the United Arab Emirates as regional and worldwide hubs for cryptocurrency traders.

The Dubai Virtual Assets Regulatory Authority (VARA), a regulatory body, would oversee the virtual asset business environment regulatory, licensing, and governance components.

Reggie Raghav Jerath, founder and CEO of Gather Network, a Web3 startup based out of Dubai, told Business Today, “Dubai is becoming an important hub for the cryptocurrency industry as it allows easier operability for asset licenses, many big players like Binance and FTX are opening their offices here. Heading towards becoming the crypto capital of the world, the region has been gaining heightened popularity. It is also treated as a hub for promoting various virtual assets NFTs and Web3, bringing crypto-friendly regulations in place to make sure the industry thrives.”

Well, as of now it seems like Dubai has become the most preferred location for Indian Web3 and crypto startups and in the process, India is losing out on talent as well as value created.