This was influenced by an increase in the tax rate on transactions with digital assets to 30%

​Crypto trading volumes on Indian exchanges have almost halved

04.04.2022 - 14:35

190

1 min

What’s new? Cryptocurrency exchanges in India have seen trading volumes drop from 15% to 55% following the introduction of a 30% capital gains tax on digital asset transactions. A Twitter post by Aditya Singh, the co-founder of the online community, Crypto India, shows a graph of the drop in trading.

Source: Twitter.com

What is going on on the exchanges? Domain traffic on Indian crypto exchanges has also dropped by 40%. On WazirX, one of India’s most popular crypto exchanges, trading volume has fallen below $100 million from $208 million.

What had happened before? India’s crypto tax law came into effect on April 1. Indians started paying a capital gains tax of 30% on crypto transactions. Also, Indian residents will have to pay a 1% tax deducted at source (TDS) and taxes on crypto gifts, without the ability to make deductions for losses.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy