After the Indian government imposed taxes on cryptocurrency transactions, Binance’s Indian users have increased by more than tenfold. Since then, the daily trading volumes of some Indian-based cryptocurrency exchanges have fallen by more than 90%.
Indians in Binance at Record High
Bloomberg reported Tuesday that Indian crypto-exchange Binance users have increased in number after the TDS (1% tax deduction at source) was implemented in July.
According to the publication, India saw 429,000 Binance app downloads during August. This is also the most recent number this year. However, trading volume at major Indian cryptocurrency exchanges is down by more than 90% each day since the 1% TDS was implemented.
Rohan Misra (CEO at SEBA India), a subsidiary Swiss-based SEBA Bank AG commented on the tax.
It is unclear whether or not the recent tax regulations will apply to cryptocurrency derivatives transactions involving futures.
A new 30% tax is added to crypto asset gains. Crypto trading losses can’t be offset against income. Indian cryptocurrency exchanges also have limited support from banks, which makes it hard for traders to transfer money into and out of the trading platform.
Another cryptocurrency exchange, FTX was able to see an increase in app downloads from January, but not July. It saw approximately 40,000 Indian downloads in January, nearly 96,000 in July and almost 52,000 August.
Coinbase Global Inc. was listed on the Nasdaq and saw app downloads drop to 16,000 from 31,000 in June. Coinbase attempted to expand in India in April, but ran into problems with UPI payments.
While Binance’s app downloads soared, some major Indian cryptocurrency exchanges are seeing declines in the number of user sign-ups, the publication conveyed. Indian crypto exchange Coindcx’s app downloads dwindled to 163,000 in August from 2.2 million in January, according to data from market intelligence firm Sensor Tower.
Wazirx was another Indian cryptocurrency exchange. Its monthly app downloads fell to 92,000 from 596,000 in January. Recent public disputes between Binance CEO Changpeng Zhao and Wazirx over ownership led to Zhao encouraging Wazirx users with funds to Binance. Wazirx’s bank accounts were frozen by the Indian Enforcement Directorate (ED) in early August but were unfrozen earlier this week.
Regarding whether Binance has started collecting the transaction tax from users in India, a spokesperson for the exchange told the news outlet that the company “is currently monitoring the situation and will make further announcements in due course.”
You think Binance is a good choice for Indian cryptocurrency investors? Please comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.