three exchanges – ZebPay, wazirx And CoinDCX According to data from CoinGecko show, the value of daily trades suffered a drop of between 60% and 87% immediately after the 1% tax cut at source took effect. Its CEO said that fourth, Giottus saw a 70% trading sink.
Those heavy declines from already depressed trading levels, as a combination of falling prices, unfavorable tax treatment and difficulty getting cash on exchanges, combined to suppress a once-hot market.
For example, Binance-backed WazirX traded at $3.8 million on July 2, the day the tax known by TDS took effect, CoinGecko data shows. It would have taken less than two hours to reach that point in early July last year. (Crypto exchanges trade 24 hours a day, seven days a week).
Rajagopal Menon, vice president of WazirX, said that while long-term crypto holders are still buying and selling, market makers and high-frequency traders are “gone”. Traders are also doing more peer-to-peer trading and migrating to so-called decentralized exchanges, he said.
The government introduced a tax system for digital asset In February, a flat 30% tax is included on TDS and income from crypto investments. It also placed restrictions on damages on such assets, treating them separately from stocks and bonds.