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From Silicon Valley to sand dunes: why Indian cryptocurrency firms are eying Dubai for growth
- Dubai saw over 90,000 Indian companies registered with the Dubai Chambers,
- The city’s largest tech event GITEX saw more than 300 Indian start-ups, a number that had tripled from the previous year
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According to RBI Remittance Survey 2021, India’s 30-per cent expat population in the United Arab Emirates (UAE) account for 18 per cent of the US$110 billion global remittance inflow to India. The financial ties between the two countries stretch beyond remittances, now encompassing the realm of Web3, an evolving iteration of the internet based on blockchain technology.
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Trade between India and the UAE surged to US$85 billion last year, and both countries are exploring interoperability between their central bank digital currency (CBDCs) projects.
Dubai saw over 90,000 Indian companies registered with the Dubai Chambers, while the city’s largest tech event, GITEX, saw more than 300 Indian start-ups, a number that had tripled from the previous year.
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India topped Chainalysis Global Crypto Adoption Index in 2023, and is now the world’s second-largest cryptocurrency market by transaction volume. But the local industry, that has been drying up due to the government’s strict tax rules, is inspiring local players to seek the oasis of Dubai’s burgeoning cryptocurrency ecosystem.
“A lot of Web3 founders prefer Dubai or Singapore as their hub, because they have clarity and certainty around regulations and greater community support. When you’re setting up a business, investors are more comfortable in a jurisdiction where there are no last-minute surprises. I am starting to see this trend on the ground and it must be reversed,” said Sumit Gupta, the chief executive of Indian cryptocurrency exchange CoinDCX.
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