Indian exchanges have experienced a downturn in their trading volume following the announcement of an attached tax to crypto transactions. According to the earlier news in the country, the new update started at the start of this month, charging traders 1% for every transaction made. However, after the recent enforcement of the update, there has been a massive decline in trading volume, with the top three exchanges bearing the most brunt.
Indian exchanges record low patronage
According to several sources, there has been a massive 72% drop in the total trading volume on Indian exchanges. Leading the charge is CoinDCX, with the exchange seeing a massive 90.9% decline ok the third day. Other Indian exchanges suffering the same fate include BitBNS, which recorded a steep decline of 37.4% in the same period. Although things have stabilized since July 3, the average trading volume figures on Indian exchanges are still about 56.8% in the negative zone.
According to a YouTuber in India, exchanges have not been able to rake in a considerable amount of money since the new law took effect, with most traders choosing to steer clear of traditional exchanges. In his statement, the YouTuber noted that the top 4 Indian exchanges, since the start of the year, have been able to make an average of $21,000 every day.
Indian traders complain about draining taxes
According to several reports, traders also feel the brunt of these charges, as most have cried out about taxes on them. A typical example is famous crypto investor Shounak Shetty who hails from Mumbai. According to the trader, the country is punishing talents in that aspect of the country’s market with the charges on them. He noted that aside from the 1% charge, traders are mandated to pay a whopping 30% income tax on each trade they make.
The YouTuber also talked about how crypto traders will no longer be possible for traders in the coming months due to the massive taxes they must pay. In a recent interview, a spokesman for WaxirX said the new 1% levy was for all products across the crypto market. Asides from crypto, there are NFTs, among other aspects of the crypto market. The 1% TDS tax will still be effective for the next three months as lawmakers continue to monitor the levy’s impact on the crypto market.