Surviving the Storm: Indian Crypto Exchanges Adapt Amid Tax Hikes and Market Decline

Posted on by Artificial Intelligence
Dark stormy sky, Indian crypto exchanges on a rocky boat, adapting to high waves of taxes, international platforms far away, calm waters, G-20 flag, innovation light piercing through, somber mood, neo-expressionism art style, shadows hinting regulations, determination in the face of adversity.

Indian crypto exchanges are struggling to survive amidst stringent tax regulations and a decline in trading volumes. Since February 1, 2022, the Indian government has imposed a 30% tax on crypto profits and a 1% tax deducted at source (TDS) on all transactions, causing local industry leaders to worry about the future of the industry in the country.

Tensions began to escalate as trading volumes plummeted by over 70% within the first ten days after the taxes were implemented. This was further exacerbated by a “shadow ban” that restricted banking access to crypto exchanges, hindering their operations.

With the ongoing decline in the local crypto market, Indians moved more than $3.8 billion in trading volume from local exchanges to international platforms. However, some hope remains as India, being the president of the Group of 20 (G-20) in 2023, is working towards framing globally coordinated rules for the crypto sector.

Despite the uncertain atmosphere, prominent Indian crypto platforms like CoinDCX, CoinSwitch, WazirX, BuyUCoin, ZebPay, and Giottus, have adopted various survival strategies. CoinDCX and Okto co-founder Neeraj Khandelwal revealed that the company has a four-year financial runway and is investing in innovation and technology. WazirX, on the other hand, has resorted to cutting costs and renegotiating contracts while maintaining its focus on the crypto market.

CoinSwitch removed “Kuber” from its name and shifted from being a crypto exchange to a crypto investment platform, making it possible for users to invest in other assets like fixed deposits, mutual funds, and Indian stocks. ZebPay and BuyUCoin are focusing on user growth and exploring global expansion plans, respectively.

Giottus, a lesser-known Indian exchange, is concentrating on operational excellence, cutting marketing costs, and reducing risks associated with exchanges. The company also plans to provide customers with proof of reserves, adding a layer of transparency to its operations.

Despite the many hurdles facing the Indian crypto market, industry players are determined to survive and face the challenges head-on. While the tax regime remains a significant point of contention, the hope for a potential boom in the crypto market, fueled by India’s role in framing global crypto policies, keeps the industry driven.

Source: Coindesk

Sponsored ad

More Articles

An intricate, stylistically Renaissance-inspired scene, with soft chiaroscuro lighting casting long shadows. At the centre, a crypto innovator stands holding a compass, symbolizing the tough decisions on regulatory navigation. He is flanked by two distinct landscapes: to the left, a vibrant, welcoming foreign market, brimming with growth and innovation. To the right, a decidedly over-lit and bureaucratic U.S. environment, symbolizing its complex regulatory systems. On the horizon, a rising sun peeps, suggesting the future potential of the U.S crypto sector. Mood: Ambivalent and contemplative.

Navigating U.S. Crypto Regulations: Retreat or Stand Ground for Long-Term Survival?

Antonio Juliano, founder of dYdX, suggests crypto developers should shift their focus from the convoluted U.S. regulatory environment to friendlier overseas markets for the next five to ten years. His perspective sheds light on the industry perception that U.S. lacks definitive digital asset regulations. However, views differ, with some believing that despite current regulatory obscurity, pioneers can seek clarity and establish a safe, legal operating ground in the U.S.

Cryptocurrency courtroom scene, Ripple vs SEC, dramatic lighting, intense atmosphere, digital currency symbols, conflicting viewpoints, regulatory uncertainty, official documents unsealed, blurred text, Ethereum not a security controversy, neutral artistic palette, anxious crypto market waiting, cautious investors.

Hinman Speech Documents Unsealed: Ripple vs SEC Impact on Crypto Regulation and Classification

The global cryptocurrency community anticipates the release of crucial documents related to Hinman’s speech, as the district court denies the motion to seal. This development in the lawsuit against the U.S. Securities and Exchange Commission could impact the regulatory structure for cryptocurrencies, highlighting inconsistencies in the SEC’s approach and potentially leading to a demand for fairer classification of digital assets.

A symbolic image of a large, ornate, antique lock being unsealed by a classic feather quill, representing the unsealing of documents involving a significant cryptocurrency case. The scene should evoke an atmosphere of mystery, with a mood of both tension and anticipation. Bathed in the soft, contrasting light reminiscent of Dutch Golden Age paintings, the image hints at change, uncertainty, engagement and profound impact on regulatory landscapes. The color palette of the image should spread across mellow golds, stark blacks, and intense blues, metaphorically illustrating the interplay between transparency, obscured information and the unknown.

SEC’s Unveiling of Sealed Binance Documents: Pros, Cons, and Crypto Market Effects

“The US SEC has reversed its decision to seal certain documents in its case against Binance.US, revealing the unstable regulatory landscape. The unveiled documents may provide insight into the accusations against Binance.US and signal the SEC’s commitment to transparency. This move reminds crypto entities of the importance of regulatory engagement, despite uncertainty.”