When A 1% Tax Deduction Was Passed, Indian Cryptocurrency Exchanges Dropped By 63%.

Credit: Medium.com

According to data from data aggregator nomics.com, daily trade volume at cryptocurrency exchange WazirX decreased by more than 63 percent on July 1 to US$5.36 million from US$14.53 million on June 30.

From US$2.62 million on June 30 to US$2.09 million on July 1, CoinDCX trading volume decreased by about 20%.

On top of the 30 percent flat tax on all cryptocurrency revenue that went into effect on April 1, India added a 1 percent tax on the sale and transfer of crypto assets over 10,000 Indian rupees (about $127) as of July 1.
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Since April 1, trading volumes at India's top cryptocurrency exchanges have decreased by as much as 70%, per Crebaco analysis. In the last day, CoinDCX had a decline of 33.69 percent, while WazirX experienced a drop of 20.08 percent.

Despite having about 15 million users, WazirX anticipates a reduction in transaction volume from $45 billion to $20 billion or perhaps less for the fiscal year that ends in March.

While the majority of that can be ascribed to the decline in cryptocurrency values, particularly Bitcoin, taxes have also made purchasing the asset more difficult. very erratic

The fact that investors must wait until the end of the fiscal year to receive money back would limit their access to capital even though they are entitled to a tax refund from the government if their losses surpass a certain threshold.