The number of Indian users on crypto exchange Binance has skyrocketed after the Indian government started levying taxes on crypto transactions. Meanwhile, daily trading volumes at several major crypto exchanges based in India are down more than 90% since the new tax rules went into effect.
Binance sees record number of Indian users
The number of Indian users registered on the global crypto exchange Binance has skyrocketed after 1% tax is deducted at source (TDS) went into effect in July, Bloomberg reported on Tuesday.
The number of downloads of the Binance app in India increased to 429,000 in August, the publication added, noting that the number was the highest this year. In contrast, the daily trading volume at several major crypto exchanges based in India is reported to be down above 90% since TDS 1% comes into effect.
Commenting on the new tariffs, Rohan Misra, Managing Director at SEBA India, a subsidiary of Switzerland-based SEBA Bank AG, said:
Recent tax regulation is not clear on whether the 1% tax withheld at source applies to crypto derivatives transactions involving futures contracts, as to transactions electronic cash delivery.
TDS 1% is hit on a new amount Tax 30% on returns from crypto assets. Furthermore, crypto trading losses cannot be offset with earnings. Indian crypto exchanges are also facing limited support from the banking system, making it difficult for users to transfer funds in and out of the trading platform.
Another foreign-based crypto exchange, FTX, has seen an increase in app downloads since January but not since July. The exchange has seen about 40,000 downloads in India in January, nearly 96,000 downloads in July, and 52,000 downloads in August.
However, Nasdaq-listed crypto exchange Coinbase Global Inc. saw its app downloads in India drop to 16,000 in August from nearly 31,000 in June Coinbase tried to expand its operations in India in April but quickly Have trouble with the UPI payment system.
While downloads of Binance’s app skyrocketed, several major Indian crypto exchanges are seeing a drop in the number of registered users, the publication said. According to data from market intelligence firm Sensor Tower, Indian crypto exchange Coindcx app downloads fell to 163,000 in August from 2.2 million in January.
Another Indian crypto exchange, Wazirx, saw its monthly app downloads drop to 92,000 in August from around 596,000 in January. The exchange has recently been in contention. Publicly disagree with Binance CEO Changpeng Zhao (CZ) about ownershipmake Zhao encourage Wazirx users transfer money to Binance. Wazirx’s bank accounts were frozen by India’s Enforcement Director (ED) in early August but have since been frozen. don’t freeze earlier this week.
As for whether Binance will begin collecting transaction taxes from users in India, a spokesperson for the exchange told the news outlet that the company is “currently monitoring the situation and will make further announcements in due course.” appropriate time”.
What do you think about Indian crypto investors choosing to use Binance? Let us know in the comments section below.
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