The crypto trading volume has taken a hit after implementing tax laws on digital assets. On April 1, 2022, as per the new budget of India, they raised the taxes on the cryptocurrencies by up to 30%, which led to a more significant loss for many crypto exchange companies such as CoinDCX, WaxirX, and many more. They all faced a more substantial loss due to this new Budget in India. The report released by Mumbai-based research firm CREBACO has claimed that Indian crypto exchanges have witnessed a significant drop in crypto trading volumes.
Finance Minister Nirmala Sitharaman announced that a 30 percent tax is deducted from all profits generated via crypto trading in the nation. The tax laws also instruct Indian crypto users to pay one percent TDS on each crypto transaction.
Since April 1, the Indian crypto market has faced a more significant loss; the volumes due to tax addition continue to fall, as they cannot go right and left; there are no chances of it going up until the tax reduction.
The new tax has impacted the market negatively. The government must look into this. Because there is no way to stop this (crypto), the government should embrace the technology,” Coindesk quoted Sidharth Sogani, the founder and CEO of Crebaco, saying. The trading volumes on WazirX, ZebPay, CoinDCX, and BitBns have dropped down by 72 percent, 59 percent, 52 percent, and 41 percent, respectively, the report says.
Since it was announced in February, it has been a conflict issue between Indian members of the Cryptocurrency Community. While several industry experts and crypto enthusiasts have lauded the government for taking a ‘regulate-over-restrict’ approach toward the high-risk asset class, others have asked for a lower tax on crypto incomes.
• Due to this tax implementation, all the Crypto enthusiasts have faced a more significant loss and a will to invest in crypto.
• If this continues, India will be far behind due to the upcoming metaverse
• India can generate many job opportunities using crypto. Instead, they are killing it.
• On Twitter, #ReduceCryptoTax has been making it to the India trends list for some time now.