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

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 198 Views

Fresh data on Indian crypto exchanges’ 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. 

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

The trading volume on WazirX, the leading crypto exchange in India, declined from $47.8 million on April 1 to $13.2 million on Sunday. CoinDCX’s trading volume dropped from $12.16 million to $5.76 million, followed by Bitbns with an overall decline of 41.29% in the past ten days.

Apart from harsh crypto tax laws directly inspired by India’s gambling laws, many payment processing partners that offer Unified Payments Interface (UPI) accessibility have also severed ties with crypto exchanges.

Related: Coinbase to invest in Indian crypto and Web3 amid tax regulation clarity

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

Interestingly enough, even though crypto taxes have been based on the gambling laws, the fantasy sports and gambling applications in the country have full access to all forms of payment integration including UPI.

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.


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