Crypto chaos in India? New tax causes volumes to collapse

Gana Gana Mana! – According to data compiled by Crebaco, a cryptocurrency research firm, cryptocurrency trading volumes on major Indian exchanges have Significantly decreased since April 1. On that day, it was new tax On cryptocurrency earnings into effect in India. Volume on WazirX, the country’s largest exchange, fell 72%.

Deliquescent trading volumes in India

The volumes of four Indian exchanges were collected by analyzing data on CoinMarketCap and Nomics, another data company. data reveal 72% drop on WazirXand 59% on ZebPay, 52% on CoinDCX and 41% on BitBns. Crebaco measured trading volumes in US dollars.

India now applies a tax of 30% on crypto transaction profits. In addition, the state does not allow the compensation of gains for losses in other transactions. The most controversial provision will not take effect until July 1. In fact, India will then levy a tax of 1% withholding at source (TDS).

“April 1, 2 and 3 were public holidays. Since then, volumes have continued to fall. I don’t think it will return (…) It has created a new standard. It may go down or skewed, but it is unlikely to rise again. “Obviously, the new tax has had a negative impact on the market. The government needs to look into this. Since there is no way to stop this (encryption), the government must embrace the technology.”

Siddharth Sujani, CEO of research firm Crebaco

According to crypto lawyer Suril Desai, the drop in volumes could mean trade has shifted elsewhere. mention it The only trading volumes we get are from central exchanges. Off-chain exchanges which has no effect might happen”.

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Cryptocurrency exchanges want to be reassured

ZebPay exchange declined to comment. In addition, other exchanges did not immediately respond to requests for comment. Meanwhile, Satvik Vishwanath, co-founder and CEO of Unocoin, another Indian exchange announce The new tax law has affected the market.

“People who earn less than 1,000,000 rupees (about $13,000) annually affected by a flat income tax of 30% on cryptocurrencies. The 1% TDS affects market makers and liquidity providers. Both are necessary for a better crypto ecosystem in India. »

Sathvik Vishwanath, Co-Founder and CEO of Unocoin الهندية Indian Exchange

Anton Gulen, regional head of crypto exchange AAX, said the decline in volume should reverse in the near term.

“AAX has also seen an outflow of active Indian users over the past few weeks. However, I believe the tax rate can be revised to attract more taxpayers, as that is the ultimate goal of any government.”

Anton Julen, Regional Director of crypto exchange AAX

Trading volumes collapse in India after cryptocurrency regulation.

Johnny Liu, CEO of the trading platform, KuCoin, said that some beginners are less inclined to invest in cryptocurrencies in the short term.

However, KuCoin has not recorded any outflow, according to internal data. Cela peut s’expliquer par le degré plus élevé de natif de la crypto parmi nos utilisateurs (…) La nouvelle loi affectera l’humeur et le comportement du marché à court terme, mais il sera difficile de bloquer l’adoption de la crypt long term »

Johnny Liu, CEO of the KuCoin trading platform

Although the recent regulation of cryptocurrency in India has clearly caused trading volumes to drop, this should only be temporary. In fact, these new laws have at least an advantage Define a clear framework for crypto assets. As a result, many investors can put their bags in the country. This is the case in any case exchange Coinbase who decided to invest a million dollars in the country.

In India, regulators have caused sudden monsoons to occur in the exchanges. Protect yourself from the weather By registering with BinanceThe reference platform for buying and exchanging bitcoin and cryptocurrency (affiliate link).

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