Cryptocurrency taxes are an increasingly discussed topic around the world, with some countries having a 0% tax on cryptocurrencies and some, such as Slovakia, more than 30%. India itself is already very active in addressing this issue, where the parliament has decided that, under the provisions of the new tax law, an equal 30 percent tax is levied on all profits from virtual digital assets, including cryptocurrencies. This is not a very friendly law, and of course it didn’t take long for the crypto community itself to “speak out”. Many traders do not like this decision, which results in reduced trading volumes on all Indian crypto exchanges.
Data compiled by Nomics showed that CoinDCX trading volumes were very good for the last week between April 30 and April 31, followed by a sharp decline. Essentially the same situation occurred on all stock exchanges in the country, including WazirX and ZebPay, which also saw a sharp decline in trading volumes. However, Nischal Shetty, co-founder of WazirX, thinks it is too early to talk about the impact of the country’s recently introduced tax policy. In addition to the 30 percent income tax, the Indian Finance Minister also announced that all transactions in digital assets that exceed a certain threshold will be subject to a tax deduction of 1% from 1 July. In the near future, it will be very interesting to monitor the situation in this country.