India’s crypto trading volume collapses 10 days after the new taxes were imposed and the volumes went down as much as 72% as we can see more today in our latest cryptocurrency news.
India’s crypto trading volume crashed on April 1st and the day the new tax law came into effect as per the data from Crebaco, the crypto research organization. The volumes of four Indian exchanges were collated by Nomics and CoinMarketCap as the data noted. The data reveal a drop of 72% on WazirX, CoinDCX 52%, Zebpay 59%, and 41% on BitBns while the trading volumes were in US dollars. India’s crypto tax law enforcing 30% tax on the profits from crypto transactions came into effect on April 1st but it doesn’t allow setting off losses from the crypto transactions. The most controversial provision and a 1% tax deducted at source ability will not happen until July 1st.
It is unclear whether the drop in trading volumes is because of the new law and the data suggesting the drop in volume on the Indian exchanges which is in line with the glboal trend. Crebaco analyst Sidharth Sogani said the information was compiled by analyzing four to five exchanges that have reliable data:
“April 1, 2, and 3 were holidays. Since then volumes are continuing to fall. I don’t think this will return. This has created a new benchmark. It can go further down or sideways but it is unlikely to go back up. It is clear that the new tax has impacted the market negatively. The government must look into this and because there is no way to stop this (crypto), the government should embrace the technology.”
According to senior lawyer Suril Desai it is still unclear whether the drop in volumes means that the trading reduced or moved somewhere else:
“The only trading volumes we get comes from exchanges. The off-chain trades could be happening for which there is no record.”
ZenPay also said that they will not be commenting while other exchanges didn’t return requests for comment. The co-founder of Unocoin also said:
“People earning less than 1,000,000 per year is affected by 30% fixed income tax on crypto. 1% TDS is affecting the market makers and liquidity providers. Both are needed for better crypto ecosystem in India.”
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