Trading Volume on Indian Crypto Exchanges Tumble as Tax Regime Comes In
Main page News, Taxation, India, Cryptocurrency Exchanges, Regulations

Indian cryptocurrency exchanges are facing hurdles as trading volumes plunge significantly over controversial tax law that requires crypto investors to pay 1% of tax deducted at source (TDS) if a transaction exceeds ~$130.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

As per a report from Bloomberg, trading volume on ZebPay, WazirX and CoinDCX plunged between 60% and 87% shortly after the 1% tax came became effective on July 1. The report notes that WazirX generated $3.8 million worth of trading on July 2, while it would have taken less than two hours to make the same numbers in July last year.

Coinbase Suspends UPI Services in India Over 'Informal Pressure'

WazirX Vice President, Rajagopal Menon, noted that even though long-term investors are still trading, market makers and high-frequency traders are "gone." In addition to TDS, the Indian government also a flat 30% tax on income from crypto investments.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error