Cryptocurrency Trading Volumes in India Plunge Further as Mobikwik
Stops Service
Cryptocurrency trading volumes in India have plunged further across exchanges as traders mull over 30% crypto taxation. In addition, popular payment service provider Mobikwik has stopped service to exchanges. The trading volumes in India continue to slide after the government began taxing crypto income at 30% without allowing any loss offsets or deductions.
According to
crypto research firm Crebaco, cryptocurrency trading volumes have fallen from
last week across all major exchanges, Moneycontrol reported. Wazirx suffered a
72% drop in trading volume, Coindcx 52%, and Zebpay 59%.
In addition,
MobiKwik reportedly withdrew its services across exchanges on April 1 amid
unclear regulations. Mobikwik was one of the preferred methods of payment for
purchasing cryptocurrencies on exchanges.
A crypto
exchange executive was quoted by the publication as saying:
"Mobikwik did
not give any specific reason for withdrawing its services. We were just told
that they would not be partnering with exchanges anymore."
Last week, the
Nasdaq-listed crypto exchange Coinbase announced that it had fully launched in
India and users could transfer funds to buy crypto using the Unified Payments
Interface (UPI) system. The National Payments Corporation of India (NCPI),
which created the UPI, however, clarified that no crypto exchange is using the
UPI system in India.
On July 1,
another damaging tax will go into effect. Crypto transactions will be levied a
1% tax, deducted at source (TDS). An Indian parliament member recently
explained why this tax will kill the crypto industry.
Meanwhile,
the Indian government is still working on a framework for crypto. Finance
ministry officials are reportedly consulting with international organizations,
including the International Monetary Fund (IMF) and the World Bank, as well as
the Reserve Bank of India (RBI) and other domestic regulators.
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