The volume of Indian crypto exchanges declines after 30% tax goes into effect

Recent data on trading volume of Indian crypto exchanges show a significant decline in trading practices among Indians just ten days after the implementation of the tax rule. India’s new 30% crypto-tax rule went into effect on April 1, despite many stakeholders and exchange operators warning of the adverse effects.

A research data report shared by Indian blockchain analytics firm Crebaco with Cointelegraph shows that trading volume on top Indian crypto exchanges has declined as high as 70% in the past 10 days.

Crypto-trading volume on major Indian exchanges Source: Creabaco

Trading volume on WazirX, India’s leading crypto exchange, fell from $ 47.8 million on April 1 to $ 13.2 million on April 10. past ten days.

In addition to tough crypto-tax laws directly inspired by India’s gambling laws, many payment processing partners that have Unified Payments Interface (UPI) accessibility also offer heavy ties with crypto exchanges.

Related: Coinbase to Invest in Indian Crypto and Web3 Amid Clarity on Tax Regulations

Coinbase recently had to suspend the cryptocurrency option just a day after the inauguration of its crypto trading services for Indians. While payment processors such as MobiKwik had ties with wazirX and other crypto exchanges following a recent warning from the government.

Interestingly enough, although crypto-taxes are based on the gambling laws, the fantasy sports and gambling apps in the country have full access to all forms of payment integration including UPI.

Many stakeholders in the crypto community have warned that these impractical tax measures and added restrictions on crypto trading will do more damage to the booming crypto economy in the country and the early effects are visible.

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