Key Takeaways:
- The number of Indian users on the Binance cryptocurrency exchange has increased dramatically since the Indian government began taxing crypto transactions.
- Meanwhile, since the new tax restrictions went into effect, daily trading volumes on certain large India-based cryptocurrency exchanges have dropped by more than 90%.
After a 1% tax obligation deducted at source (TDS) became effective in July, the number of Indian customers signing up for Binance’s global cryptocurrency exchange increased, Bloomberg, reported on Tuesday.
According to the publication’s further information, the number of Binance app downloads in India increased to 429,000 in August, making it the biggest amount this year.
In contrast, it has been reported that since the 1% TDS went into force, daily trading volumes at several significant cryptocurrency exchanges in India have decreased by almost 90%.
Rohan Misra, Chief Executive Officer of SEBA India, a branch of SEBA Financial institution AG, a Swiss company, discussed the new tax and proposed:
- The most recent tax policy isn’t entirely clear on whether the 1% tax deduction at source applies to crypto by-products deals like futures, just as it does to crypto area agreements.
- The additional 30% tax on gains from crypto assets is in addition to the 1% TDS charge. Additionally, losses from cryptocurrency trading cannot be deducted from gains.
- It is challenging for consumers to transfer money into and out of trading platforms since Indian cryptocurrency exchanges receive little support from the banking sector.
July saw increased downloads on Binance. The biggest cryptocurrency exchange in the world is ahead of the curve in a sector where rivals are hampered by high taxes and the challenges associated with moving money into and out of trading venues.
Daily volumes at significant India-based platforms have dropped by more than 90% after a 1% levy on cryptocurrency transactions went into effect in July.
With reasonable fees, a broad selection of services, and a well-known mentoring network that makes it easy to swap tokens and money, Zhao has outperformed competitors.
The transaction tax levied on domestic residents must be handled by foreign exchanges and individuals of Indian descent.
Changpeng Zhao, the billionaire CEO of Binance Holdings Ltd., is increasing his hold over the Indian cryptocurrency trading industry as a result of a big tax change.
The number of downloads of Binance’s app in India reached 429,000 in August, the highest number this year and over three times that of CoinDCX, which came in second, according to market research firm Sensor Tower data.
Wazirx, a distinct Indian cryptocurrency exchange, showed a decline in monthly app downloads from roughly 596,000 in January to 92,000 in August.
Changpeng Zhao (CZ), the CEO of Binance, recently engaged the exchange in a public argument about control of the exchange, which prompted Zhao to advise Wazirx users to transfer money to Binance.
The Indian Enforcement Directorate (ED) first blocked Wazirx’s bank accounts in early August; however, they were unfrozen earlier.
