Overregulation in the crypto sector has resulted in a significant drop in trade volume in the Indian crypto market from April 1, 2022.
Since the early days of April, Indian officials have imposed a 30% tax on cryptocurrency profits. This has proven to be a significant setback for many traders unwilling to take chances in the present market.
The number of exchange transactions on the four major exchanges, WazirX, ZebPay, CoinDCX, and BitBns, has decreased, according to Crebaco researchers.
The suspension on WazirX sparked the most outrage among investors, with trading activity plummeting by 72%. Two platforms (ZebPay and CoinDCX) had a 52% drop, while BitBns saw a 41% drop.
Sidharth Sogan, a co-founder of data firm Cerbaco, believes these are not final figures. The amount of trading on Indian cryptocurrency platforms may continue to decline. Positive indications are unlikely to emerge in the foreseeable future, given the high tax disadvantages for local traders.
According to Sathvik Vishwanath, CEO of the UnoCoin platform, politics hinders liquidity and innovation.
Remember that, despite the popular outcry, the decision to implement a new tax was taken in January 2022. Parliament adopted this decision, and the statute took effect on April 1.