Recent data on the trading volume of Indian crypto exchanges reveals a significant decline in trading practices among Indians just ten days after the implementation of the tax rule. India's new 30% crypto tax rule came into effect on April 1, despite many stakeholders and exchange operators warning of its harmful effects.
A research data report shared by Indian blockchain analytics firm Crebaco with Cointelegraph shows that trading volume on major cryptocurrency exchanges in India has decreased by as much as 70% in the last 10 days.
Trading volume on WazirX, India's leading crypto exchange, dropped from $47.8 million on April 1 to $13.2 million on Sunday. CoinDCX transaction volume fell from $12.16 million to $5.76 million, followed by Bitbns with an overall decrease of 41.29% in the last ten days.
In addition to harsh crypto tax laws directly inspired by Indian gambling laws, many payment processing partners offering Unified Payment Interface (UPI) accessibility have also severed ties with cryptocurrency exchanges.
Related: Coinbase to Invest in Indian and Web3 Cryptocurrencies Amid Tax Regulation Clarity
Coinbase recently had to suspend crypto payment option just one day after launching its cryptocurrency trading services for Indians. Meanwhile, payment processors like MobiKwik had cut ties with WazirX and other crypto exchanges after a recent warning from the government.
NPCI Statement of April 7, 2022. With reference to some recent media reports on buying Cryptocurrencies using UPI, the National Payments Corporation of India would like to clarify that we are not aware of any Cryptocurrency exchanges using UPI. Please see the attached document pic.twitter.com/lGTcaSLKeC
— NPCI (@NPCI_NPCI) April 7, 2022
Interestingly, even though crypto taxes have been based on gambling laws, gaming and fantasy sports apps in the country have full access to all forms of payment integration, including UPI.
Coinbase disabled the UPI service in India a few days after the NPCI statement.
This is not new, Indian exchanges have also been facing payment service issues since 2018.
Weird fact: Real gambling apps get proper payment service support while crypto exchanges are alienated.
— Aditya Singh (@CryptooAdy) April 10, 2022
Many stakeholders in the crypto community have warned that these impractical tax measures and added restrictions on cryptocurrency trading would further damage the country's thriving crypto economy, and the early effects are visible.
Post navigation
