New data on the trading volume of Indian cryptocurrency exchanges reveals a significant decline in trading practices among Indians just ten days after the implementation of a new tax rule. The new 30% tax rule on cryptocurrencies in India came into effect on April 1, despite many stakeholders and exchange operators warning of its negative effects.
A research data report shared with Cointelegraph by Indian blockchain analytics firm Crebaco shows that trading volume on major Indian cryptocurrency exchanges has decreased by up to 70% in the last 10 days.
Trading volume on WazirX, India’s leading cryptocurrency exchange, dropped from $47.8 million on April 1 to $13.2 million on Sunday. CoinDCX trading volume dipped from $12.16 million to $5.76 million, followed by Bitbns with an overall decline of 41.29% over the last ten days.
Aside from strict cryptocurrency tax laws directly inspired by India’s gambling laws, many payment processing partners offering Unified Payment Interface (UPI) accessibility have also severed ties with cryptocurrency exchanges. cryptocurrencies.
Recently, Coinbase had to suspend the cryptocurrency payment option just one day after launching its cryptocurrency trading services for locals. Meanwhile, payment processors like MobiKwik had cut ties with the likes of WazirX and other crypto exchanges following a recent government warning.
Statement by NPCI as on 7th April 2022. With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI. Please see attached document pic.twitter.com/lGTcaSLKeC
— NPCI (@NPCI_NPCI) April 7, 2022
NPCI statement as of April 7, 2022. With reference to some recent media reports around buying crypto using UPI, the National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI. UPI.
Interestingly, even though cryptocurrency taxes have been based on gaming laws, fantasy sports and gaming apps in the country have full access to all forms of payment integration, including UPI.
Coinbase disabled UPI service in India few days after NPCI statement.
This is not new, Indian exchanges have also been facing payment service problem since 2018.
Weird fact – Actual gambling apps get proper payment service support while crypto exchanges are being alienated.
— Aditya Singh (@CryptooAdy) April 10, 2022
Coinbase disabled the UPI service in India just days after the NPCI statement.
This is not new, Indian exchanges have also been facing payment service issues since 2018.
Strange fact: Gambling apps get proper payment service support while cryptocurrency exchanges are being isolated.
Many stakeholders in the crypto community have warned that these impractical tax measures and added restrictions on cryptocurrency trading would do further damage to the country’s thriving digital economy, and the first effects are already visible.
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