Trading on four exchanges drops by 60% or more
The Indian cryptocurrency exchanges’ predictions that a contentious new transaction fee would cause trade to be disrupted are coming true, with volumes down ever since the charge took effect.
Three exchanges, ZebPlay, WazirX, and CoinDCX, reported declines in daily trading expenses of between 60 and 87 percent when the 1 percent withholding tax deduction became effective on July 1. This is according to CoinGecko data.
Giottus Fourth Stock Exchange Dropped 70%
A combination of declining prices, a disfavorable tax structure, and difficulties obtaining cash to exchanges combined to cool a once-hot market, fueling these rapid decreases were already low levels of activity.
In order to handle digital assets differently from stocks and bonds, the Indian government devised a tax framework for them in February that included TDS and a flat 30 percent tax on income from investments in cryptocurrencies. It also outlawed the offsetting of losses on such assets.