Trading volumes of some Indian exchanges fell as much as 72%.
Crypto trading volumes of India’s major exchanges have been on its head since April 1, when the new tax law went into effect, according to data collected by crypto research organization Crebaco.
The volumes of four Indian exchanges were compiled by analyzing data from Coinmarketcap and Nomics, a data firm. The data reveals a 72% drop in WazirX, 59% in ZebPay, 52% in CoinDCX and 41% in BitBns. India’s crypto tax law, which imposes a 30% tax on profits from crypto transactions, came into effect on April 1, 2022. Still, it’s unclear whether the decline in trading volumes is due to the new tax law, and the data shows that the decline in volumes in Indian stock markets is largely in line with the global trend.
Sidharth Sogani of Crebaco said the information was compiled by analyzing four to five exchanges with reliable data:
“April 1, 2 and 3 were holidays. Since then, volumes have continued to drop. I don’t think this will come back. This created a new benchmark. It may move lower or sideways but is unlikely to go up again. It is clear that the new tax has a negative impact on the market. The government should investigate this and adopt the technology as there is no way to stop this (crypto).” According to
senior crypto lawyer Suril Desai, it’s unclear whether the drop in volumes means trade has declined or has moved elsewhere. Sathvik Vishwanath, co-founder and CEO of another leading Indian exchange, Unocoin, said that the new tax law has impacted the market.
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