Just ten days after the tax rule went into effect, new data on the trading volume of Indian crypto exchanges shows a dramatic drop in trading behavior among Indians. Despite several stakeholders and exchange operators warning about the negative consequences, India’s new 30% crypto tax legislation went into effect on April 1.
According to a report provided with Cointelegraph by Indian blockchain analytic business Crebaco, trading volume on prominent Indian crypto exchanges has dropped by as much as 70% in the last ten days.
WazirX, India’s largest cryptocurrency exchange, saw its trade volume drop from $47.8 million on April 1 to $13.2 million on April 10. CoinDCX’s trading volume fell from $12.16 million to $5.76 million in the last ten days. Then, while Bitbns’ trading volume fell by 41.29 percent.
Many payment processing partners who offer Unified Payments Interface (UPI) accessibility have discontinued relations with crypto exchanges, in addition to punitive crypto tax rules directly influenced by India’s gambling laws.
Only a day after launching its crypto trading services for Indians, Coinbase had to stop the crypto payment option. Following a recent warning from the authorities, payment processors. Of course,like as MobiKwik have suspended relations with WazirX and other crypto exchanges.
Even if cryptocurrency taxes are predicated on gambling legislation, fantasy sports. Then, and gambling apps in the country have complete access to all types of payment integration, including UPI.
Many members of the crypto community have warned that these ineffective tax measures. Then, and new limits on crypto trading will wreak havoc on the country’s booming crypto sector. Then, and the early repercussions are already obvious.
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