Key Takeaways:
- Bitbns has failed to process INR in more than 20 days since requested.
- Crypto exchanges are now competing with public bank on how long it takes to withdraw.
LAGOS (CoinChapter.com) — Indian-based cryptocurrency exchange, Bitbns has come under serious criticism after failing to process INR withdrawals requested by its investors.
In detail, several Bitbns customers have called out the crypto exchange for failing to provide their funds since requested. For example, Twitter user @Marvel5502 indicated that Bitbns, in almost 20 days since he requested his funds, failed to process the request.
Bitbns fiasco comes as Indian investors face the reality of the declining value of digital assets after the crypto market plunged more than 50 percent and hit an 18-month low. Shiva Rajbhar, who also can’t withdraw his INR, lamented the situation, describing the exchange as fraudulent.
“I used to think withdrawal and deposit challenges are common with public banks, but crypto exchanges are now competing with them in this matter. I know something as simple as withdrawals and deposits of your own money, shouldn’t be something adding up to your problem list.”
Another crypto investor bemoaned.
Additionally, another customer demanded an explanation to sum up the feeling of investors who cannot withdraw their funds. Finally, @teabtc complained of high buying rates and failure to process INR withdrawal.
No Response From Bitbns And Its CEO
Meanwhile, the silence from the exchange seems to have aggravated the situation as customers demand an explanation. Gaurav Dahake, Bitbns CEO, and Nitin Caid, Bitbns compliance officer, have remained quiet despite hundreds of demands for an explanation.
“What’s the problem with Bitbns? I have one INR withdrawal request from bitbns to my bank account on 2nd June. It’s very very frustrating that my withdrawal status is still processing.”
An investor said.
India’s New Crypto Tax Responsible For Hardship
It’s also worth noting that India’s tax deducted at source (TDS) on cryptocurrencies has been linked to the recent suffering. Notably, the country’s new taxation rules bring a huge cut out of earnings, resulting in a drop in trading volumes.
TDS is a liability imposed on the exchanges that deposit taxes on behalf of sellers on their platform. It will be calculated at 1% of a transaction’s value. The seller would be able to offset the 1% TDS from their total tax liability of 30%.
Furthermore, transactions of up to INR 50,000 ($640) in a year are exempted from the rule of 1% TDS for certain taxpayers. Notably, the government must be notified of a transaction within 30 days in which it was. Additionally, within the same time frame, the government will receive all funds deducted.
The new tax system and the recent crypto downtrend have affected crypto exchanges in India. Moreover, the trading volume of exchanges in India has plunged by 90-95% after the new crypto laws became applicable.
Notably, the daily trading volume of cryptocurrency exchange WazirX fell more than 63% on July 1 to US$5.36 million, from US$14.53 million on June 30, according to aggregator nomics.com. Similarly, CoinDCX trading volume by more than 20% to $2.09 million on July 1, from US$2.62 million on June 30.
