Since finance minister Nirmala Sitharaman declared a 30% tax on crypto transfers at the budget session of parliament on Tuesday, Indian crypto exchanges have seen an increase in trading volume.
Binance-owned WazirX’s 24-hour trading volume had increased by 56.26 percent, while the WRX token price had increased by 25.3 percent. Unocoin and CoinDCX, two local competitors, saw their trading volume increase by 50.18 percent and 9.09 percent, respectively.
While India still lacks a law defining the legality of crypto, the government’s decision to tax digital assets is likely to enhance investor confidence by legitimising billions of dollars in local crypto investments. The anticipated taxes were welcomed by Indian exchanges, including WazirX CEO Nischal Shetty, who cited moves toward regulatory clarity as a reason.
However, some commentators believe that a 30% tax, India’s highest tax bracket, is punitive and may deter investors.
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