The volume of crypto trading on India’s biggest exchanges has fallen since April 1, when a new tax on crypto gains went into effect, according to data compiled by cryptocurrency research firm Crebaco.
After Parliament enacted a tax scheme that sparked outrage among India’s crypto community, citizens were subjected to a 30% capital gain tax on crypto transactions. Additionally, Indians who buy or sell crypto will be charged a 1% tax deducted at source (TDS), and they will not be allowed to claim losses as a deduction. TDS will commence on July 1st, a month after the start of crypto tax on April 1st.
Is the trading impacted because of the new tax rules?
The trading volumes of four Indian exchanges were generated using data from CoinMarketCap and Nomics, a data business. According to the statistics, WazirX’s trading volume decreased by 72 percent, ZebPay’s by 59 percent, CoinDCX’s by 52 percent, and BitBns’ by 41 percent. The trade volumes were calculated in US dollars. The new tax legislation, according to Unocoin CEO and co-founder Sathvik Vishwanath, is impacting the sector.
Sidharth Sogani, Crebcao CEO, stated:
“The 1st, 2nd, and 3rd of April were all holidays. Volumes have continued to decline since then. This isn’t going to happen again, in my opinion. This has established a new standard. It may go further down or sideways, but it is unlikely to return to its original position. The new tax has clearly had a detrimental impact on the market. The government should investigate this, and because there is no way to stop it (crypto), the government should welcome it.”
Have you also stopped trading crypto after the new tax rule? Comment below.
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