As traders debate the 30 percent crypto taxation, cryptocurrency trading volume in India has plummeted across all exchanges. Popular payment provider Mobikwik also stopped offering service to exchanges.
Crypto Trading Volume in India Plunges Further
The Indian government has started taxing cryptocurrency income at 30% and not allowing loss offsets. This is causing a drop in cryptocurency trading volume.
Moneycontrol has learned that crypto research firm Crebaco reported that the volume of cryptocurrency trading fell from last week on all major exchanges. Wazirx experienced a 72% decline in trading volume. Coindcx was down 52% and Zebpay fell 59%.
MobiKwik also reportedly pulled its services from exchanges starting April 1, amid unclear regulations. Mobikwik was a popular method to pay for cryptocurrencies purchased at exchanges.
According to the publication, a top crypto exchange official said:
Mobikwik didn’t give any reason why it was pulling out of its services. We were just told that they won’t be partnering with exchanges anymore.
Coinbase, an Indian-listed cryptocurrency exchange that is listed on Nasdaq, said last week it had fully launched in India. It also announced that users can transfer funds to purchase crypto via the Unified Payments Interface. The National Payments Corporation of India, which established UPI, said that the UPI system is not being used by any crypto exchange.
A new, more damaging tax will be in effect on July 1. A 1% tax will be deducted from the source for crypto transactions (TDS). Recently, an Indian legislator explained the reasons why this tax will destroy crypto.
In the meantime, Indian officials are still working to create a crypto framework. According to reports, officials from the Finance Ministry are consulting international organisations, such as the International Monetary Fund and the World Bank as well as the Reserve Bank of India and other regulators.
How do you feel about Indian trading volumes plummeting since the 30 percent tax came into effect? Mobikwik also withdrew its service to Indian exchanges. Please leave your comments below.
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