India’s Cryptocurrency Trading Volume Drops As 30% Tax Goes Into Effect

Payment service providers have also severed ties with major crypto exchanges even as the same is available for gambling and fantasy sports platforms.

New data on the trading volume of crypto exchanges in India shows a significant drop in the trading practices of Indians just ten days after the implementation of the tax rule. India’s new 30% crypto tax rule went into effect on April 1, although many stakeholders and exchange operators have warned of its ill effects.

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

Cryptocurrency trading volume on major Indian exchanges Source: Creabaco

Trading volume on WazirX, the leading crypto exchange in India, has dropped from $47.8 million on April 1 to $13.2 million on April 10. CoinDCX’s exchange rate dropped from $12.16 million to $5.76 million, followed by Bitbns with an overall drop of 41.29% over the past ten days.

In addition to draconian crypto tax laws that are directly inspired by India’s gambling laws, many payment processing partners that provide Unified Payments Interface (UPI) access have also severed ties. with cryptocurrency exchanges

Coinbase recently had to suspend its crypto payment option just a day after launching its crypto trading service for Indians. While payment processors like MobiKwik have severed ties with WazirX and other crypto exchanges following a recent warning from the government.

Interestingly, even though the crypto tax is based on gambling laws, gambling and fantasy sports apps in the country have full access to all forms of payment integrations including UPI.

Many stakeholders in the crypto community have warned that these unrealistic tax measures and additional restrictions on crypto trading will do more harm to the growing crypto economy. strong in water and the initial effects are visible.