WRX, the native token of WazirX, rallies 28% following India’s crypto ‘legalization’

Key Takeaways

• WRX, the native token of WazirX, rallied 28% on Tuesday to hit $1.
• Indian Finance Minister’s decision to bring crypto under the 30% tax slab propelled the rally.
• WRX is up over 115% since the year began but about 90% bellow its all-time high.

YEREVAN (CoinChapter.com)- On Tuesday, WRX, the native token of Indian cryptocurrency exchange WazirX, rallied 28% to hit $1.

The Indian government gave new legalization hopes to cryptocurrency enthusiasts by taxing crypto gains. While presenting the annual budget in the Parliament, Finance Minister Nirmala Sitharaman proposed to impose a 30% tax on crypto transfer gains. Additionally, she insisted that no deductions be allowed other than the acquisition costs. 

The decision also prevents traders from setting off losses from crypto transfers against any other income. Besides trade gains, Sitharaman also proposed taxing gifts in the form of digital assets, including nonfungible tokens (NFTs). The authorities will tax all such gifts in the hands of the recipient. 

Moreover, the Reserve Bank of India (RBI) will roll out the central bank digital currency (CBDC), the digital rupee, in 2022-2023. 

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While much of the cryptocurrency market remained immune to the news, WRX, the native token of WazirX, skyrocketed. The local crypto opened the day at just $0.8073 and fell a few points soon after to $0.8045. However, the announcement of the Finance Minister caused the token to skyrocket, bringing it to a daily high of $1.18. 

Nischal Shetty, the CEO of WazirX, who started the #IndiaWantsCrypto social media campaign, was among the first to welcome the development. 

“India just taxed crypto. Hope to see a reduction of crypto ban fear in India. Lot to unpack here but, overall this is a very positive step forward for crypto ecosystem in India,” 

Shetty said following the Finance Minister’s budget presentation. 

What lies ahead for WazirX (WRX)?

WazirX started 2022 at $0.4685. At the time of writing, the price of WRX is $0.99846. That is a massive 115% gain so far. With 20% of its recent losses recovered, WRX will be looking to maintain its position above the $1 mark in the immediate future. 

However, the WRX is still 83% below its all-time high. On 5 April 2021, WazirX put up an impressive 800% rally in just three days to touch $5.96. While that target is a long way off, for now, the coin will look to lick its bruises from the recent market crash.

Meanwhile, India’s new cryptocurrency taxation decision should not get all the credit for the rally put up by WRX. The cryptocurrency market has been in a recovery mode in general. Most major cryptocurrencies, led by Bitcoin (BTC) and Ethereum (ETH), have been in recovery mode following a bad start to the year. 

As India looks to make sense of what the future holds vis-à-vis cryptocurrencies, WRX will benefit once WazirX starts a more aggressive campaign in the country.