• About Us
  • Privacy Policy
  • Contact Us
Newsletter
Cryptoddy
Advertisement
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Regulation
  • Blockchain
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Regulation
  • Blockchain
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptoddy
No Result
View All Result
Home Regulation

Trading volume drops as 30% capital gains tax on crypto tax goes into effect in India

April 5, 2022
0
Trading volume drops as 30% capital gains tax on crypto tax goes into effect in India
Share on FacebookShare on Twitter


Upland

The new crypto tax regime in India has finally gone into effect, and it appears to be affecting the trading volume in the country.

Media reports from the country suggest that trading volumes on crypto exchanges have dropped by an average of 15% within the first three days of the month.

Not only that, but crypto exchanges operating within the country have also seen their domain traffic drop by 40%.

India crypto exchanges trading volume suffers

Co-founder of Crypto India, Aditya Singh, confirmed these reports on Twitter. He posted graphs showing a significant dip in the trading volume of 4 of India’s top exchanges.

Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April. pic.twitter.com/ay60tR692q

— Aditya Singh (@CryptooAdy) April 2, 2022

The trading volume of WazirX, the country’s biggest exchange, dropped from $208 million to less than $100 million before the month even started.

The drop in trading volume doesn’t come as a surprise, given the hefty tax imposed on crypto. Indians will have to part with 30% of their profits with the new tax law.

In addition, another tax will come into effect next month, which will deduct 1% on every crypto transaction from the source.

Already, crypto stakeholders are predicting that the 1% tax on every transaction will affect liquidity within the sector. They claim that this tax will limit the number of trades as investors who are high-frequency traders will cut down on their trades.

The rule also prevents tax write-offs for losses made on trades which means investors would be more likely to run at a loss.

Stakeholders lambast the new tax regime

Many predict that such a tax regime could push many crypto traders and companies to leave the country.

According to Nischal Shetty, CEO of WazirX, the 1% tax-deductible at source (TDS) is “the worst-case scenario for the industry.”

The executive director of policy at CoinDCX, Manhar Garegrat, also stated that “There will be no liquidity left in the markets” if TDS comes into effect.

“Trades placed by buyers will not get executed as efficiently as they do today, and such inefficiency will eventually dwindle the whole ecosystem,” he added.

Major exchanges want to invest in India

While crypto stakeholders are worried about an exodus, major exchanges like Coinbase and FTX are showing interest in investing in the crypto space of the Asian country.

Earlier today, Coinbase revealed that it plans to invest $1 million into crypto and Web3 projects initiated in the country.

Another report revealed that FTX could be set to invest in India’s Mobile Premier League (MPL), which intends to launch NFTs and a play to earn based game before the end of the year.

This shows that despite the government’s best effort at making the industry unattractive to investors, some stakeholders still believe there is ample opportunity for them in the country.

Symbiosis

Get an Edge on the Crypto Market ?

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits





Source link

Related articles

Bitcoin And Retirement: U.S. House Bill To Include Crypto On 401(K) Plans

Bitcoin And Retirement: U.S. House Bill To Include Crypto On 401(K) Plans

May 22, 2022
Incredible, the Central African Republic Actually Adopted Bitcoin. What Else Do We Know?

Incredible, the Central African Republic Actually Adopted Bitcoin. What Else Do We Know?

April 28, 2022
Tags: CapitalcryptoDropseffectGainsIndiataxTradingvolume
Share76Tweet47

Related Posts

Bitcoin And Retirement: U.S. House Bill To Include Crypto On 401(K) Plans

Bitcoin And Retirement: U.S. House Bill To Include Crypto On 401(K) Plans

May 22, 2022
0

United States Rep. Byron Donalds has initiated a bill to the U.S. House of Representatives seeking to incorporate Bitcoin...

Incredible, the Central African Republic Actually Adopted Bitcoin. What Else Do We Know?

Incredible, the Central African Republic Actually Adopted Bitcoin. What Else Do We Know?

April 28, 2022
0

As it turns out, the Central African Republic is the second country in the world to adopt bitcoin as...

Senator Lummis says Bitcoin is a commodity and will become a currency soon

Senator Lummis says Bitcoin is a commodity and will become a currency soon

April 4, 2022
0

The U.S. Senator from Wyoming, Cynthia Lummis, recently championed Bitcoin as a future currency in an interview. The interview...

Crypto miners strike gold in Oklahoma as state introduces new tax incentives

Crypto miners strike gold in Oklahoma as state introduces new tax incentives

April 4, 2022
0

Oklahoma lawmakers are in the final stages of introducing legislation that would make the state the new cryptocurrency mining...

Australia continues regulation drive with new policy targeting crypto and financial influencers

Australia continues regulation drive with new policy targeting crypto and financial influencers

April 4, 2022
0

The Australian Securities and Investments Commission (ASIC) has issued new warnings to financial influencers. This was contained in its Information...

Load More
Bitcoin Transaction Fees Remain Historically Low Despite Recent Spike
Bitcoin

Bitcoin Transaction Fees Remain Historically Low Despite Recent Spike

May 26, 2022
0

Data shows the Bitcoin total transaction fees have continued to be at historically low values despite a spike during...

Read more
The Last Palmswap Trading Competition Before Mainnet Launch

The Last Palmswap Trading Competition Before Mainnet Launch

May 26, 2022
US Fed Vice Chair Says Digital Dollar Would Take 5 Years to Launch

US Fed Vice Chair Says Digital Dollar Would Take 5 Years to Launch

May 26, 2022
What Happens When You Die in the Metaverse?

What Happens When You Die in the Metaverse?

May 26, 2022
Units Capital: A highly trusted and tested trading platform

Units Capital: A highly trusted and tested trading platform

May 26, 2022
Cryptoddy

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptoddy.com

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Regulation
  • Blockchain
  • Market
  • Prices
  • ICO

© 2020 cryptoddy.com

  • bitcoinBitcoin (BTC) $ 29,476.00
  • ethereumEthereum (ETH) $ 1,852.70
  • tetherTether (USDT) $ 0.999702
  • usd-coinUSD Coin (USDC) $ 1.00
  • bnbBNB (BNB) $ 310.47
  • xrpXRP (XRP) $ 0.393644
  • binance-usdBinance USD (BUSD) $ 1.00
  • cardanoCardano (ADA) $ 0.485317
  • solanaSolana (SOL) $ 44.31
  • dogecoinDogecoin (DOGE) $ 0.079424