New Delhi, Apr 25: Following the adoption of the new cryptocurrency tax law, the volume of trading on major Indian cryptocurrency exchanges has decreased.
Data compiled by Crebaco, a Mumbai-based research organisation, and Nomics, a cryptocurrency data generator, indicated this.
On April 1, the new tax law went into force. All profits from cryptocurrency trading in the country will be subject to a 30 percent tax, as declared by Finance Minister Nirmala Sitharaman. Furthermore, no deductions, set-offs, or carryovers are permitted.
Indian cryptocurrency users must additionally pay a one percent TDS on each transaction, according to the tax legislation.
According to a report in CoinDesk, the volumes of four Indian exchanges — WazirX, ZebPay, CoinDCX, and BitBns — were compiled using data from CoinMarketCap and Nomics. WazirX was down 72 percent, ZebPay was down 59 percent, CoinDCX was down 52 percent, and BitBns was down 41 percent, according to the statistics.
The report also quoted Crebaco CEO Sidharth Sogani as saying, “It is clear that the new tax has impacted the market negatively.”
Mr Sogani went on to add that April 1, 2, and 3, were all holidays and since then volumes have continued to decline since then. “The government must look into this, and because there is no way to stop this (crypto), the government should embrace the technology,” he said.