Binance CEO Changpeng Zhao (CZ) has all but given up on India. Pointing out the 1% transaction tax that came into force on 1 July 2022, CZ said it makes crypto trading unviable in India.

CZ red flags 1% Transaction Tax
“If you are going to tax 1% on each transaction, there is not going to be that many transactions… To be honest, I don’t think India is a very crypto-friendly environment,” he said.

While CZ maintained his negative outlook on India, first publicly expressed during the Singapore Fintech Festival early this month, Binance is available to Indian users.

“A user could trade 50 times a day, and they will lose like 70% of their money. There is not going to be any volume for an order book type of exchange. So we don’t see a viable business in India today,” he explained.

Indian exchanges have witnessed up to a 90% fall in trading volume after the transaction tax on crypto activities became effective in July.

CZ has Not Given Up Entirely
“We just have to wait. We are in conversation with a number of industry associations and influential people and trying to put some logic there… We are trying to get this message across, but tax policies typically take a long time to change,” Zhao cautioned.