Crypto Trading Volume in India Plummets by 72% After the New Crypto Tax

Vignesh Karunanidhi
Crypto Trading Volume in India Plummets by 72% After the New Crypto Tax
Source: The Indian Wire

Crypto trading volume in India has plummeted as much as 72% since the new crypto tax came into effect.

The data has been provided by a cryptocurrency research organization called the Crebaco. As per the analysis done by collecting information from Nomics and CoinMarketCap, there has been a significant drop in trading volume on some of the major crypto exchanges in India.

Exchanges in India are taking the beating

There has been a volume drop of 72% on Wazirx, 59% on Zebpay, 52% on CoinDCX, and 41% on BitBns.

Ever since the unreasonable 30% crypto tax came into effect on April 1, 2022, the Indian crypto industry has suffered enough. The new law doesn’t include the provisions to set off even the losses from other cryptocurrency transactions.

The additional hefty 1% TDS on every transaction will come into effect from July 1. Some say that the significant drop in the volume is following the global trend. The link between the volume drop and the new tax law cannot be neglected.

The data regarding the drop in volume has been collected by analyzing certain prominent crypto exchanges in India.

“April 1, 2, and 3 were holidays. Since then volumes are continuing to fall. I don’t think this will return. This has created a new benchmark. It can go further down or sideways but it is unlikely to go back up. It is clear that the new tax has impacted the market negatively. The government must look into this and because there is no way to stop this (crypto), the government should embrace the technology,” he said.

The provided data is only as per the analysis of the Indian crypto exchanges. Investors and traders in India who might make off-chain trades are currently out of the record.

Some unreasonable ministers suggested that the government hike the crypto tax to 50%. He compared crypto trading to gambling and that the 30% tax is implemented to discourage the investors in India from investing in crypto.