Trading Volume on Indian Crypto Exchanges Falls Due to Taxes

Trading volumes on crypto exchanges in India have fallen following the approval of a new tax on cryptocurrency transactions.

On July 1, 2022, the Indian government imposed a 1% tax on all cryptocurrency transactions exceeding $126.

Now, crypto exchanges are now required to withhold from the buyer 1% of the value of the transaction, and this amount must then be paid to the state as tax.

Because of the introduction of such tax, trading volumes on exchanges in India, including WazirX, ZebPaou and CoinDCX, have recently dropped by at least 50%.

On June 10, WazirX, which is backed by Binance, had $14.2M in trading volume, but on July 1 that number dropped to $5.2M. On July 10, trading volume was only $2.7M.

The increased tax burden and the current bear market have prompted some firms to migrate to more crypto-friendly countries, including Dubai and Singapore.