India, according to the CEO of Binance, is not a promising market for cryptocurrencies

The co-founder and CEO of cryptocurrency exchange Binance, Changpeng Zhao, stated that he does not currently see a lot of potential in the Indian crypto sector.

One of the most important figures in the cryptocurrency sector, Zhao, said at a TechCrunch crypto conference on Thursday, "I don't think India is a very crypto-friendly environment.

Zhao's remarks come after the catastrophic fall of Binance's rival FTX, which has shaken the cryptocurrency community. Particularly in India, the cryptocurrency business has been constantly in upheaval as a result of governmental taxing enthusiasm and regulatory uncertainties.

Zhao also commented on India's tax system. He claims that the nation's high tax environment has made it challenging for multinational corporations to function.

There won't be that many transactions if you impose a 1 percent tax on each one, he claimed.

"A person may trade 50 times a day and still lose around 70% of their capital. A form of exchange with an order book won't have any volume. Thus, we do not now envisage a profitable business in India. All we can do is wait. We are attempting to provide some reasoning there in our conversations with various industry associations and powerful figures," he said.

This is not Zhao's first time warning about the Indian cryptocurrency sector.

The CEO of Binance had earlier this month predicted that India's high taxes on cryptocurrency transactions would "kill the industry" there.

Zhao had remarked at a conference in Singapore that India's high tax rate will definitely kill the business.

His remarks followed the government's introduction of an additional 1% tax, to be deducted at source, on transfers of digital assets worth more than Rs 10,000 or on a total of Rs 50,000 in transactions over the course of a single fiscal year with vapourized trade volumes.

The move comes after any gains on the transfer of cryptocurrency assets have been taxed at a rate of 30% since April, which is greater than in many other countries, including the US and the UK.

One of India's oldest cryptocurrency exchanges, ZebPay, is looking to expand abroad as domestic regulations choke the business.

With trading volumes declining and a nasty argument with Binance over its ownership further vaporising transactions, WazirX also felt the brunt of the taxes.