YEREVAN (CoinChapter.com) – Cryptocurrency trading volumes on Indian exchanges continue to fall due to the government’s strict taxation, data from research firm Crebaco shows.
Indian exchange volumes continues to tumble after New Crypto tax rules became applicable on 1st April. pic.twitter.com/X78HsU78Yc
Notably, India’s first “crypto unicorn,” the CoinDCX, witnessed a 52% drop in trading volumes in the first week of April. However, the readings later reached 74%.
The drop was higher for other players in the Indian market. WazirX, for example, lost up to 90% of its trading volume, according to data from the tracking website LiveCoinWatch.
Trading volumes on WazirX have dropped since April 1. Credit: LiveCoinWatch
Over 50% of trade volume from Bangalore-based crypto exchange Bitbns also eroded. ZebPay, on the other hand, shed around 60%. As a result, according to estimates, the overall volume of Indian crypto exchanges is down up to 70%.
Traders face problems making deposits on Indian Exchanges
As the trading volumes continue to fall, traders face another problem. Many have discovered they can no longer make deposits on Indian exchanges.
Crypto trading platform CoinSwitch Kuber disabled all deposit services for Indian National Rupee (INR) on its mobile application on Tuesday. While the company did not make any official announcement yet, several users have taken to Twitter to voice concerns over the development.
The screenshot shows that CoinSwitch Kuber can no longer use the Unified Payments Interface (UPI) or bank cards for deposits. The UPI is an instant real-time payment system developed by the National Payments Corporation of India, a Government agency under the Ministry of Finance.
Bank transfer routes like the National Electronic Funds Transfer (NEFT), the Real-time gross settlement systems (RTGS), and the Immediate Payment Service (IPS) also don’t seem to work.
Slamming the unfriendly crypto policy in India, WazirX founder Nischal Shetty expressed hope that the situation would improve.
“Regulatory uncertainty & banking issues have led to India losing out on first wave of investments. A few tweaks and India can rise to the top,”
Statement by NPCI as on 7th April 2022. With reference to some recent media reports around the purchase of Cryptocurrencies using UPI, National Payments Corporation of India would like to clarify that we are not aware of any crypto exchange using UPI. Please see attached document pic.twitter.com/lGTcaSLKeC
US-based crypto exchange Coinbase, which launched in India on April 7, also disabled the UPI payment method on its app. In a further blow, Indian payment service provider Mobikwik, which partnered with Coinbase, stopped supporting crypto trading.
India’s unfriendly crypto policy has delivered a big blow to the crypto exchanges. Only time will show if they will manage to recover soon.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he urrently works as a reporter at CoinChapter.
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