{"id":3144,"date":"2022-04-05T05:40:04","date_gmt":"2022-04-05T05:40:04","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=3144"},"modified":"2022-04-05T05:40:05","modified_gmt":"2022-04-05T05:40:05","slug":"trading-volume-drops-as-30-capital-gains-tax-on-crypto-tax-goes-into-effect-in-india","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=3144","title":{"rendered":"Trading volume drops as 30% capital gains tax on crypto tax goes into effect in India"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n   <\/p>\n<p>The new crypto tax regime in India has finally gone into effect, and it appears to be affecting the trading volume in the country.<\/p>\n<p>Media reports from the country suggest that trading volumes on crypto exchanges have dropped by an average of 15% within the first three days of the month.<\/p>\n<p>Not only that, but crypto exchanges operating within the country have also seen their domain traffic drop by 40%.<\/p>\n<h2>India crypto exchanges trading volume suffers<\/h2>\n<p>Co-founder of Crypto India, Aditya Singh, confirmed these reports on Twitter. He posted graphs showing a significant dip in the trading volume of 4 of India\u2019s top exchanges.<\/p>\n<p lang=\"en\" dir=\"ltr\">Indian Exchanges saw Volume drop after New Crypto tax rules became applicable on 1st April. pic.twitter.com\/ay60tR692q<\/p>\n<p>\u2014 Aditya Singh (@CryptooAdy) April 2, 2022<\/p>\n<p>The trading volume of WazirX, the country\u2019s biggest exchange, dropped from $208 million to less than $100 million before the month even started.<\/p>\n<p>The drop in trading volume doesn\u2019t come as a surprise, given the hefty tax imposed on crypto. Indians will have to part with 30% of their profits with the new tax law.<\/p>\n<p>In addition, another tax will come into effect next month, which will deduct 1% on every crypto transaction from the source.<\/p>\n<p>Already, crypto stakeholders are predicting that the 1% tax on every transaction will affect liquidity within the sector. They claim that this tax will limit the number of trades as investors who are high-frequency traders will cut down on their trades.<\/p>\n<p>The rule also prevents tax write-offs for losses made on trades which means investors would be more likely to run at a loss.<\/p>\n<h2>Stakeholders lambast the new tax regime<\/h2>\n<p>Many predict that such a tax regime could push many crypto traders and companies to leave the country.<\/p>\n<p>According to Nischal Shetty, CEO of WazirX, the 1% tax-deductible at source (TDS) is \u201cthe worst-case scenario for the industry.\u201d<\/p>\n<p>The executive director of policy at CoinDCX, Manhar Garegrat, also stated that \u201cThere will be no liquidity left in the markets\u201d if TDS comes into effect.<\/p>\n<p>\u201cTrades placed by buyers will not get executed as efficiently as they do today, and such inefficiency will eventually dwindle the whole ecosystem,\u201d he added.<\/p>\n<h2>Major exchanges want to invest in India<\/h2>\n<p>While crypto stakeholders are worried about an exodus, major exchanges like Coinbase and FTX are showing interest in investing in the crypto space of the Asian country.<\/p>\n<p>Earlier today, Coinbase revealed that it plans to invest $1 million into crypto and Web3 projects initiated in the country.<\/p>\n<p>Another report revealed that FTX could be set to invest in India\u2019s Mobile Premier League (MPL), which intends to launch NFTs and a play to earn based game before the end of the year.<\/p>\n<p>This shows that despite the government\u2019s best effort at making the industry unattractive to investors, some stakeholders still believe there is ample opportunity for them in the country.<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/trading-volume-drops-as-30-capital-gains-tax-on-crypto-tax-goes-into-effect-in-india\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new crypto tax regime in India has finally gone into effect, and it appears to be affecting the trading volume in the country. Media reports from the country suggest that trading volumes on crypto exchanges have dropped by an average of 15% within the first three days of the month. Not only that, but [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-3144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3144"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3144\/revisions"}],"predecessor-version":[{"id":3146,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3144\/revisions\/3146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/3145"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}