Trading volume on Indian crypto exchanges plunges as 30% tax goes into effect

Payment services providers have also cut ties with giant crypto exchanges despite having the same rate for gambling and fantasy sports platforms. 

Trading volume on Indian crypto exchanges plunges as 30% tax goes into effect

According to crypto exchanges' fresh data, the trading volume reveals a significant decline in trading practices among Indians just ten days after the tax rule implementation. India's new 30% crypto tax rule came into effect on April 1, despite many stakeholders and exchange operators warning against its ill effects.

According to Indian blockchain analytic research data report firm Crebaco shows that trading volume on top Indian crypto exchanges has declined as high as 70% in the past 10 days. 

WazirX trading volume declined from $47.8 million on April 1 to $13.2 million on Sunday. ConDCX's trading volume decreased from $12.16 million to $5.76 million. followed by Bitbns with an overall decline of 41.29% in the past ten days. 

Crypto tax laws directly inspired by India's gambling laws, many payment processing partners that offer Unified Payment Interface (UPI) accessibility have also severed ties with crypto exchanges. 

Coinbase recently had to suspend the crypto payment option just a day after inaugurating its crypto trading services for Indians. payment processors like MobiKwik had cut ties with the likes of WazirX and other crypto exchanges after a recent warning from the government.

Crypto taxes have been based on the gambling laws, and the fantasy sports and gambling applications in the country have full access to all forms of

Many stakeholders in the crypto community have warned that these impractical tax measures and added restrictions on crypto trading would do more harm to the thriving crypto economy in the country and the early effects are visible.

Read: India's digital currency to take 'Very Calibrated, Graduated' approach: RBI Deputy Governor