The Indian cryptocurrency market is still reeling from the economic downturn and it looks like the situation won’t improve any time soon. This is due to the sudden slowdown in trading volumes, thanks to the new 1% TDS levied by the government which has compounded the drop in average daily trading of crypto tokens, such as Bitcoin and Ethereum, in India. Read also – From Galaxy S22 Ultra to Edge 30 Pro: Here are the best alternatives to the ASUS ROG Phone 6/6 Pro
Major crypto exchanges, such as WazirX, CoinDCX, and Zebpay, have reported a dizzying drop in daily trading volume, dropping from around $10 million to $5.6 million in a matter of days since the new regime was implemented. tax. BitBNS and CoinDCX said the decline in transactions on their platforms was 37.4% and 90.9%, respectively. WazirX reported an 82% drop in average daily transactions, according to crypto research and advisory firm Crebaco. Also Read – Here are the top selling electric scooter brands in India for June 2022
The new 1% TDS on cryptocurrency transactions reduces profits made by exchanges, which began paying a 30% tax to the government under the rule formulated in April. Also Read – Realme Buds Air 3 Neo Noise Canceling Headphones Set to Launch on July 12th
Too early to say anything?
Crypto exchanges, however, are not dejected by the drop in transactions, saying it would be too early to gauge the impact of the 1% TDS. The exchanges said that since trading is generally weak on weekends, it will take some time to assess the impact. Experts, on the other hand, are not very optimistic about an imminent resumption of trading, even if the market shows signs of improvement.
The current economic recession and the ferocity of the Federal Reserve have forced crypto tokens to remain largely in the red, although they experience occasional jumps. According to the Economic Times, the gray market will continue to thrive due to the current crisis in global macroeconomic conditions. While some crypto exchanges seem resourceful enough to withstand the adverse waves, some exchanges have had to close shop.
Hyderabad-based crypto exchange Vauld, which is funded by Coinbase, recently halted all transactions after laying off a large chunk of its workforce to streamline business goals. Other crypto exchanges are considering branching out into other areas to absorb the impact and stay afloat.
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