Indian Crypto Trading Volumes Collapse on Heavy Taxes

Indian crypto traders can drop out as they now face 30% income tax and 1% tax per transaction on crypto transactions, forcing trading volume to drop.

Transaction volume on three major Indian crypto exchanges has fallen by an average of 72.5% since July 1, when a 1% tax per transaction was imposed in the country.

The withholding tax (TDS) came into effect on July 1 and appears to have had a negative impact on traders, as trading volumes fell 37.4% on BitBNS and 90.9 % on CoinDCX as of July 3. Volumes have stabilized slightly since hitting lows, but are still down 56.8% on average, according to CoinGecko.

Indian YouTube channel Crypto India tweeted on July 4 that exchange revenue, based on a 0.1% trading fee, is abysmal due to low volume levels. At the lowest volume levels, WazirX, CoinDCX, and Zebpay took in $21,649 per day.

Indian Crypto Exchange Trading Volume Drops 90-95%, 3 Months After New Money Laws Going Into Force cryptography.

Based on current volumes - Exchanges can only generate trading fee income of $1,000 to $3,000 maximum.

Bitbns still seems to be working well.

Difficult times are coming. pic.twitter.com/KNDbea9BCn

— Crypto India (@CryptooIndia) July 4, 2022

For now, crypto traders like Mumbai's Shounak Shetty are also suffering. Shetty told Economic Times on July 4 that he thinks the TDS and 30% income tax on cryptocurrency transactions in India w...