Crypto tax deters 83% Indian investors from crypto trading: WaxirX report

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The implications of what anti-crypto regulations can do for a thriving economy can be seen for the first time in India. Supporting a sharp drop in trading volumes across all Indian crypto exchanges, a report by WazirX revealed a change in investor sentiment as the Indian government implemented its second crypto law – 1% tax deduction at source on every crypto transaction. TDS).

Trading volumes on Indian crypto exchanges saw an eventual decrease of 90-95% ever since the country introduced a law that would tax investors 30% on unrealized gains. With two consecutive taxes poised to wipe out their holdings, most Indian investors have opted for hibernation in the midst of an unforgivable bear market.

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Major Indian crypto exchanges WazirX and Zebpay surveyed around 9,500 active traders in the region to better understand investor sentiment. Unsurprisingly, the survey revealed that 83% of traders were forced to reduce their trading frequency due to TDS deduction.

Another way investors in India avoided paying TDS was to sell their holdings before it was signed into the taxation law. More than 27% of investors, including the majority of millennials, sold 50% of their portfolios before April 1, while 57% sold for less than 10%. In this regard, Rajagopal Menon, VP, WazirX, said:

“The survey results determine the need to reform certain conditions to aid the growth of crypto investors in the country that will result in economic prosperity. There is a need to balance the tax regime to encourage participation and revive trading volumes. .

The risks associated with trading on non-KYC compliant exchanges come with little or no oversight, with Indian investors tracking international exchanges to evade taxes. Zebpay CEO Avinash Shekhar said:

“While India’s crypto tax policy is a step forward, rethinking certain aspects will help create a more supportive regulatory environment for all industry stakeholders and ultimately contribute to overall economic progress.”

related: Bollywood A-lister-backed GARI token dip sparks rag pull rumours

GARI, a token launched by one of Bollywood’s A-list celebrity, Salman Khan, fell 83% in value in a matter of hours on Monday. While GARI Network brushed off price depreciation as a “market phenomenon,” investors were skeptical of the event pulling a rug.

Of the lots, around 2,300 or 24% of the surveyed investors shared their interest in trying international crypto exchanges to avoid paying TDS during the business cycle, while 29% confirmed a drastic reduction in their trading activity .

The GARI Network conducted an internal assessment and found no apparent hack that could drive down the price of the token. The company said:

“So far it looks like a market event. We assure our community that all tokens are safe in the respective reserves.”