I noticed that the price difference in Bitcoin on gdax vs some of indian exchange is more than 20%. What's stopping us to buy in USD, transfer to an Indian exchange and cashing out. repeat infinity. I am sure no one here would be well equipped to answer FEMA and money laundering guidelines but hey india doesn't yet have a policy on how to tax Bitcoin
Which Indian exchange are you referring to?
There are a lot of them .. zebpay was the one I was looking at where the equivalent Bitcoin rate is 21000USD
Indian exchanges 😂😂😂😂😂
Cryptos are speculations.. using Indian exchanges is speculation on speculation...the govt have no freaking clue there ..
there are many challenges with arbitrage chief among them is the extreme volatility of the asset and the often very long time waiting for money to transfer / clear between exchanges. The volatility will often turn a winning trade into a losing one.
https://zebpay.zendesk.com/hc/en-us/articles/115004219545-What-are-the-taxes-on-buying-selling-bitcoins- If I understand correctly, there is an 18.2% fee on buying/selling bitcoin. Discounting that, the prices are much closer (buying on coinbase and selling on zebpay will actually result in a loss of ~$600/coin). If it sounds too good to be true, it usually is.
Gst is the "goods and services tax" which is only applicable on the 0.2% of the fee .. so it's not 18.2% rather .236%
There's a term for this, it's called Arbitrage. The challenge is that you would need to have bank accounts in both countries (Indian exchanges almost certainly won't cash out to US accounts) and an easy way to transfer currency quickly between the two accounts. You're then also going to need to know what the tax situation is in both countries.
I have accounts in both counties with easy transfer options ..( Non resident indian )