Crypto exchanges in India are feeling the effects of a recently introduced 30% tax on cryptocurrency incomes in the country. Even with the world’s largest population of crypto users, the country has experienced a sharp reduction in local exchange activity. WazirX, arguably the most popular exchange in the country, recently published a report that highlighted the plight of trading – down 90% since the introduction of the tax.
In case you missed any of what happened, here’s a wrap up of the events that unfolded.
What happened in India?
There has been bad news in India’s crypto scene. In Q1 of 2022, the Indian government announced that they would taxing all income made on cryptocurrencies at a rate of 30%. That rate is completely flat, meaning regardless of what you earn income wise, the rate applies.
Why did they do that?
Well, crypto is big business in India. As mentioned, India has the world’s largest population of crypto owners. In 2021, it was reported that over 7% of the population owned crypto in some capacity mostly over bitcoin BTC to usdt – which is over 100 million people. India has a great appetite for cryptocurrencies, and with the weakness of the Indian Rupee on global markets traders are looking for an alternative. The Indian government has certainly seen this market as a revenue generating opportunity.
What has the impact been?
Not good. Trading on major crypto exchanges like WazirX is down by 90%. 83% believe the tax has deterred them from trading. To make matters worse, the state of New Delhi actually doubled down on the tax, citing that it may introduce an additional 20% in additional taxes on any income earned on exchanges based outside of India. However, this has not made any significant progress as of late and may well not come to fruition in the long term.
There is a flip side to this however. For a long time, the Indian government has been ambiguous on how it actually sees the crypto industry – is it legal or not? The introduction of such a tax seems to go a long way in legitimizing the industry.
Where do traders turn now?
Traders are undoubtedly assessing their options right now. They do not want to be stung by a 30% tax on their incomes over single transaction of btcusdt, and are looking at ways to minimize the impact of this newly introduced taxation.
With the level of impact being felt by India based exchanges, it’s clear that traders are looking towards more international-focused platforms. ZB.com has seen trading activity in India increase since the introduction of the 30% tax, and week-on-week there has been an incremental growth in new sign-ups to the platform.
For traders seeking out an alternative platform to trade from, head to www.zb.com and create an account, or download the ZB Pro app that is available on both the App Store and Google Play.
Once your account is created, log in to your ZB account by clicking ‘Login’, and entering your login credentials. You will now be required to set up your withdrawal address – this will allow you to redeem any successful crypto investments you have made on the platform. You will be ready to trade cryptocurrencies at this point!
The ZB platform facilitates the trade of hundreds of cryptocurrency tokens. cryptocurrency trading sites in India are able to buy some of the most popular crypto tokens in their native currency, INR.
ZB.com facilitates Spot, Margin and Futures Trading on its crypto exchange, allowing users with access to dozens of currencies such INR, USD, GBP to deposit funds and begin trading in a handful of simple steps. The platform caters to both experienced traders and beginners alike, providing users of all skill sets with the opportunity to both trade and the knowledge to do so, always backed by its trademark security.
While there have been some recent policy implementations in India that have had an impact on the trading activities of Indian cryptocurrency enthusiasts, there have been signs that traders are actively finding ways to improve their prospects. One way that they have been doing this is by finding alternative exchanges, like ZB.com, to facilitate their trading. This may bode well in the long term for an internationally-focused platform like ZB, welcoming crypto enthusiasts from the world’s largest crypto population.