Crypto Trading Volumes In India Sink Due To Heavy Taxation, What’s Ahead?
July 06 2022 - 5:00AM
NEWSBTC
Cryptocurrency trading is taking another pattern and shape in India
due to the implementation of taxation laws. As a result, the
traders are experiencing a different turn in their transactions
lately in the country. The new rule in India for 1% taxation on
every transaction has been enforced from July 1. Also, the
government has a taxation rule of 30% on crypto income for traders,
investors, and other participants in the field. Subsequently,
trading volumes have made a drastic drop over the applied law. On
average, India’s three prominent crypto exchanges recorded up to
72.5% dip since the enforcement of the Tax. Related Reading
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A New Week From July 1, India enforced the Tax Deducted at Source
(TDS), creating a negative stance for traders. This has brought a
plunge in the overall crypto trading volumes in the country, as
witnessed by most exchanges. According to the reports, the record
on July 3 shows that CoinDCX had a 90.0% drop in trading volumes.
On the part of BitBNS, the decline was about 37.4%. Data from
CoinGecko revealed slight stability in volumes after crashing to
the low values. However, the average record shows a downward move
of 56.8% in the volumes. Most notable crypto traders are currently
on edge with the outplaying of recent events in the Indian crypto
market. One of the traders, Shounak Shetty from Mumbai, disclosed
his opinions concerning the new taxation of 30% on income and TDS.
On July 4, Shetty stated that such rules would damage visionary
talents in the country. Shetty mentioned that he is now seriously
contemplating the profitability of sticking with the Indian
exchange. To him, other places like Dubai seem more inviting and
conducive to higher gains. Crypto Exchanges Record Drastic Revenue
Drop The low trading volumes drastically reduced the overall
generated revenues for Indian exchanges. On July 4, Crypto India, a
YouTube channel in the country tweeted that with a trading fee of
0.1%, most exchanges could only see small revenues. The combined
daily funds for Zebpay, WazirX, and CoinDCX are $21,649 as volume
levels hit the lows. Related Reading | Active Ethereum
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exchanges like WarizX, CoinDCX, BitBNS, and Zebpay have a drop in
the average daily transaction volume. As of July 4, the value is
$5.6 million as against the June value of $9.6 million. In an
explanation, Anuj Chaudhary, Policy Analyst in WazirX, stated that
the TDS of 1% covers all virtual assets. Chaudhary gave his
explanation on YouTube during The WazirX Show for the June 30
episode. The listed assets include cryptocurrencies, NFTs,
metaverse, or other transactions executed on public blockchains.
However, few exemptions to the tax exist. These include gift cards
for discounts or goods, rewards points, and mileage points. Others
are cards for subscriptions on websites, applications, platforms,
and incentives void of monetary considerations. Featured image from
Pexels, chart from TradingView.com
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