Crypto trading dips as India’s new tax regime begins
With the implementation of the 30% tax regime on cryptocurrency from 1st April, trading volumes have dipped on almost all Indian crypto exchanges. The dip is between 15% and 55% among different crypto exchanges.
Nomics, a cryptocurrency data compiler, reported that while trading was at its highest on 30th and 31st March, trading platforms like CoinDCX, WazirX and Zebpay saw a harsh dip in volumes starting April 1.
Minal Thukral, SVP, Growth and Strategy at CoinDCX said that while there was a sharper decline this year due to the stringent tax laws, it was still in line with the usual trend wherein the trade is highest on March 31st as users square off their positions before the start of a new financial year followed by a decline in trading volumes at the start of the financial year.
Hence, as Nischal Shetty from WazirX also mentioned, it may be a speculation to say that the fall in trading is because of the new tax regime.
Well, hopefully, we’ll soon get a clearer idea as to the extent of the effect of the 30% tax rate on the Indian cryptocurrency market.
Written by,
Siya Sharma