Affected by the artillery fire of the “heavy tax policy”! Cryptocurrency volumes in India plummet

The lower house of the Indian parliament passed the cryptocurrency taxation bill in March this year, in addition to levying a 30% tax on capital gains from cryptocurrency transactions from April 1, and from July 1, cryptocurrencies over $126 will be taxed. Transactions are subject to an additional 1% Tax Deducted at Source (TDS).

The data shows that since the implementation of tax deduction at source (TDS) earlier this month, the Indian cryptocurrency exchange market has been hit hard, with some large exchanges even seeing an 80% drop in trading volume.

The lower house of the Indian parliament passed the cryptocurrency taxation bill in March this year, in addition to levying a 30% tax on capital gains from cryptocurrency transactions from April 1, and from July 1, cryptocurrencies over $126 will be taxed. Transactions are subject to an additional 1% Tax Deducted at Source (TDS).

The data shows that since the implementation of tax deduction at source (TDS) earlier this month, the Indian cryptocurrency exchange market has been hit hard, with some large exchanges even seeing an 80% drop in trading volume.


According to research firm Crebaco, trading volumes on major Indian cryptocurrency exchanges Wazirx, Coindcx, Zebpay and Bitbns plunged by about 83%, 70%, 76% and 18% respectively from June 30 to July 3.

Crebaco founder Sidharth Sogani said the sharp drop in cryptocurrency trading volumes was also a result of the turmoil in global financial markets. Furthermore, he noted that liquidity providers have also withdrawn from the Indian market.

Coindcx CEO Sumit Gupta warned:

If the TDS is 1%, the trading frequency of cryptocurrencies may decrease in as little as 7 months. Transaction volumes are also expected to decline in 10 months.

According to the Chainalysis report, India once ranked second globally in terms of cryptocurrency adoption, but the increased tax burden and the current bear market have prompted some companies to relocate to more crypto-friendly countries, including Dubai and Singapore.

According to the “Indian Express” report, WazirX co-founders Nischal Shetty and Siddharth Menon have moved their families to Dubai; another $2 billion cryptocurrency company, CoinDCX, has also established a company called “Primestack Pte” in Singapore. branch.