Binance Sees Record Increase in Indian Users After Government Starts Imposing New Crypto Tax

The number of Indian users on cryptocurrency exchange Binance has soared after the Indian government began levying taxes on crypto transactions. Meanwhile, daily trading volumes at some major India-based cryptocurrency exchanges are down over 90% since the new tax rules took effect.

Binance Sees Record Number of Indian Users

The number of Indian user sign-ups soared on global crypto exchange Binance after a 1% tax deducted at source (TDS) went into effect in July, Bloomberg reported Tuesday.

The number of Binance app downloads in India jumped to 429,000 in August, the publication added, noting that this number is the highest this year. In contrast, daily trading volumes at several major India-based cryptocurrency exchanges are reportedly down over 90% since the 1% TDS took effect.

Commenting on the new tax, Rohan Misra, CEO at SEBA India, a subsidiary of Swiss-based SEBA Bank AG, opined:

The recent tax regulation is not explicitly clear on whether the 1% tax deducted at source extends to crypto derivatives transactions involving futures, as it does to crypto spot transactions.

The 1% TDS is levied on top of a new 30% tax on gains from crypto assets. Moreover, crypto trading losses cannot be offset against income. Indian crypto exchanges are also facing limited support from the banking system, making it difficult for users to move money in and out of trading platforms.

Another foreign-based cryptocurrency exchange, FTX, saw a rise in its app downloads since January but not since July. The exchange saw about 40,000 downloads in India in January, almost 96,000 in July, and 52,000 in August.

The Nasdaq-listed crypto exchange Coinbase Global Inc., however, saw its app downloads in India tumble to 16,000 in August from almost 31,000 in June. Coinbase tried to expand its operations in India in April but quickly ran into trouble with the UPI payment system.

While Binance’s app downloads soared, some major Indian cryptocurrency exchanges are seeing declines in the number of user sign-ups, the publication conveyed. Indian crypto exchange Coindcx’s app downloads dwindled to 163,000 in August from 2.2 million in January, according to data from market intelligence firm Sensor Tower.

Another Indian crypto exchange, Wazirx, saw its monthly app downloads fall to 92,000 in August from about 596,000 in January. The exchange recently had a public dispute with Binance CEO Changpeng Zhao (CZ) over its ownership, prompting Zhao to encourage Wazirx users to transfer funds to Binance. Wazirx’s bank accounts were frozen by the Indian Enforcement Directorate (ED) in early August but were unfrozen earlier this week.

Regarding whether Binance has started collecting the transaction tax 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.”

What do you think about Indian cryptocurrency investors choosing to use Binance? Let us know in the comments section below.

Related Posts

European Parliament members vote in favor of crypto and blockchain tax policies

The resolution recommended authorities in the parliament’s 27 member states consider a “simplified tax treatment” for crypto users involved in occasional or small transactions. Members of the…

If Credit Suisse collapses, will it bring more volatility to the crypto market? Watch The Market Report

On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the Credit Suisse situation and what impact it would have on the cryptocurrency market if…

Mastercard Debuts Blockchain Surveillance Tool for Banks and Crypto-Centric Card Issuers

On Tuesday, the multinational financial services corporation Mastercard revealed that it is launching a new crypto monitoring product called Crypto Secure. The Crypto Secure software aims to…

Crypto Nomads Start to Settle Down as Threat from Pandemic Subsides and Prices Tumble

Some crypto nomads have decided to settle down following the COVID-19 pandemic, despite the decentralized lifestyle being somewhat conducive to the industry. To investigate the recent phenomenon,…

DeSo: The Answer To Elon Musk and Jack Dorsey’s Call for a Decentralized Social Media?

DeSo, a decentralized social blockchain, recently announced the release of its ambitious roadmap to decentralize social media and build the social layer of Web3. The released roadmap…

Shiba Inu (SHIB) Introduces Canyon HUB For SHIB: The Metaverse

The developer team of SHIB: The Metaverse posted more conceptual black & white artwork for the third upcoming HUB in the Web3 series. The Canyon HUB, as…

Generated by Feedzy