The trading volume of the Indian cryptocurrency exchange has been a big hit of over 70% since the start of the 1% TDS rule.
WazirX, ZebPay, and CoinDCX crypto trading volumes are reduced by more than 70%
As report According to the Economic Times, following the launch of the 1% TDS rule, Indian exchange trading volumes plummeted.
TDS here is an abbreviation for “tax withholding”. Under the 1% TDS rule, which came into force on July 1, senders of all types of crypto transactions in India are required to pay 1% of the total amount as tax.
This is part of a series of controversial digital asset regulation laws passed domestically earlier this year.
Back in April, the law stating it 30% of income What comes out of crypto transactions must be paid when the tax becomes effective. Since then, trading volumes on major Indian cryptocurrency exchanges have responded to a decline of about 40-80%. By the 12th of the month, trading volumes on the exchange had already reached their six-month lows.
Now that TDS rules are online, it means that trading volumes have dropped by more than 70% on many exchanges from June 30th to July 3rd.
Owned by Binance WazirXThere was a plunge of about 82%, one of the most popular exchanges in the country. CoinDCX observed a decrease of almost 70%, while ZebPay observed a drawdown of about 76%.
However, WazirX Vice President Rajagopal Menon argues that it is still premature to predict the effect of the rule and that things will be better understood by the second week of this month.
“As investors shift to holdings, trading across the industry declines, and it’s even more depressed when we see capital locked while traders are trading on KYC-compliant Indian exchanges,” Menon said. It’s possible. “
According to The Economic Times, some industry insiders expect trading volumes to continue to decline due to the current bear market environment.
At the time of writing Bitcoin price It has decreased by 5% in the last 7 days and fluctuates at about $ 19.7k. In the past month, the value of cryptography has been lost by 33%.
The graph below shows the trend in coin prices over the last 5 days.
The value of the crypto seems to have been moving sideways over the last few days | Source: BTCUSD on TradingView
Bitcoin hasn’t moved much in the last few days. In addition to the very short-term surge of over $ 20,000, coins are primarily integrated above the $ 19,000 level.
Featured image from Ewan Kennedy on Unsplash.com, chart from TradingView.com