Indian crypto exchanges reports sharp drop in transaction volume following 30% tax policy
The new crypto tax came on April 1, and Indian digital asset exchanges have had a sharp fall in transaction volumes.
Crypto exchange, CoinDCX, BITBNS, ZEBPay, and Wazirx on April 3 crypto industry insider tweeted, "Indian Exchange saw volume drop after New Crypto tax rules became applicable on April 1"
Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April. pic.twitter.com/ay60tR692q— Aditya Singh (@CryptooAdy) April 2, 2022
Crypto research and rating firm CREBACO global said the transaction volume and domain traffic at major Indian cryptocurrency exchanges dropped by 55% and 40%
“We observed a drop in volumes by up to 55 percent compared to the volumes in March-end, and also a drop of over 40 percent in domain traffic on Indian exchanges,” Sidharth Sogani, CEO, CREBACO Global, was quoted as saying by another media report.
Wazirx saw its domain traffic decrease from over 70 million to 40 million, CoinDCX from 19 million to 12 million, ZebPay from 15 million to 4.4 million, and Bitbns from 11 million to 9.9 million
Local media has been voicing concerns that the new crypto taxes may drive small investors away from centralized exchanges to decentralized exchanges
The Indian government 2022-23 the Indian government level a 30% tax on profile and 1% TDS on all cryptocurrency transactions. What makes these taxes all the more painful for investors is that losses on one asset can't be offset against profit on another coin, Experts feel these provisions will make the Indian crypto market uncompetitive and the country may lose the edge that it may be otherwise.
They were presented as part of the Annual Budget in the Indian parliament in early February this year and generated a considerable amount of debate. with few lawmakers calling for a more favorable environment for the crypto industry while others demanding an even more stringent tax regime.
What makes crypto taxes fearsome is the lack of regulation that makes dealing in digital assets double risky. The Indian government says it wants to wait for a global consensus to emerge on regulation issues before it comes up with its own.