Trading on Indian crypto exchanges fell by more than 60%

by in Cryptocurrency News

India

As many analysts had warned, the introduction of a tax on crypto transactions led to a significant drop in trading on Indian bitcoin exchanges. According to CoinGecko, the average daily transaction amount has fallen by more than 60%.

The most affected were the leading Indian exchanges - ZebPay, WazirX, and CoinDCX. The volume of trading on these platforms has collapsed by about 70%.

On July 1, 2022, the law on the taxation of cryptocurrency transactions began to operate in the country. The fee rate for the sender of funds is 1%. Against the background of the fall in the value of digital currencies, the introduction of the tax was extremely negatively perceived by the majority of users of trading platforms.

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Activity on the stock exchanges sharply weakened already on July 2. For example, on the WazirX platform, trading volume plummeted to $3.8 million.

According to the vice-president of the exchange Rajagopal Menon, many traders were forced to switch to decentralized platforms (DEX). The main participants in trading are still long-term investors, the top manager emphasized.