Indian exchanges volume crashes after the recent crypto tax came into effect so let’s have a closer look at our latest cryptocurrency news.
In the wake of major Indian exchanges that witnessed a huge drop in trading volume since the newly imposed 30% tax on obtained revenue, the industry is looking at more downward pressure after the introduction of another tax last Friday with the trading volume on the platforms being down by 95% as a result.
1/ Ever since new crypto tax rules📜 became applicable, trade volume on Indian🇮🇳 exchanges continues to tumble 🔻
Wazirx – $195M➡️$4.5M – 98% 🔻
Coindcx – $32M➡️$2.1M – 93% 🔻
Zebpay – $19M➡️$1.1M – 94% 🔻
Bitbns – $24M➡️$19.8M – 17% 🔻 (Somehow not affected that much) pic.twitter.com/0MnT7EFGyg
— Crypto India 🔑 (@CryptooIndia) July 3, 2022
According to the data by Nomics.com, the daily trading volume at the Binance-backed exchange WazirX dropped by 63% to $5.35 million from the preivous $14.52 million. CoinDCX also saw its volumes drop by 20% in the same timeframe. The sharp decline in trading activities came from the latest 1% tax imposed by the RBI for the sale and transfer of crypto assets that surpass $127. it also came at a time when the broad interest in these assets dropped as the main cryptocurrency crashed below the $20,000 key level.
As a result, the exchanges are under huge pressure amid the drastic decline in trading volume and for the Indian platforms, the situation got worse with the 30% flat tax on crypto income. The tradign volume dropped by 90% three months after the tax law was put into practice according to analysts Crypto India. The platforms like CoinDCX, WazirX, and ZebPay are down by 95% in tradign volume in the same timeframe and based on the current volume, the platform predicted that the exchanges will generate a tradign fee revenue of up to $3000 at a maximum.
The Indian exchanges volume crashes and the latest one that we saw was Vauld. The company announced the suspension of trading, withdrawals, and deposits on its platform due to financial difficulties of the key partners that affected its business. The move aims to explore the suitability of potential restructuring options with its legal advisors. Before the announcement, the exchange already laid off 30% of the workforce while trying to survive the crypto winter.
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