The implications of what anti-crypto regulations can do to a thriving economy can be seen first-hand unfolding in India. Supporting the massive decline in trading volumes across all Indian crypto exchanges, a report from WazirX reveals a change in investor sentiment as the Indian government imposed its second crypto law — a 1% tax deduction at source (TDS) on every crypto transaction.
Trading volumes on Indian crypto exchanges saw an eventual reduction of 90-95% ever since the country introduced a law that would tax investors 30% on unrealized gains. With two consecutive taxes ready to eat away at their holdings, most Indian investors have seemed to have opted for hibernation amid an unforgiving bear market.
Indian Crypto exchange's trading volume have plunged by 90-95% , 3 months after new crypto laws became applicable.
— Crypto India (@CryptooIndia) July 4, 2022
Based on current volumes - Exchanges are only able to generate trading fee revenue of $1000 to $3000 Max.
Bitbns seems to be still doing well.
Tough times ahead. pic.twitter.com/KNDbea9BCn
Prominent Indian crypto exchanges WazirX and Zebpay surveyed around 9,500 active traders from the region to better understand investor sentiment. Unsurprisingly, the survey revealed that 83% of traders were forced to reduce their trading frequency owing to the TDS deductions.
WazirX & @zebpay recently conducted a Trader Sentiment Survey which revealed that 83% of traders are of the opinion that recent tax implementation has deterred their trading frequency.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 6, 2022
More on the survey https://t.co/Zim75TqslP
Another method investors in India avoided paying TDS was by selling their holdings before the taxation was signed into law. Over 27% of the investors, the majority comprised of millennials, ended up selling 50% of their portfolio before April 1 whereas 57% sold under 10%. In this regard, Rajagopal Menon, VP of WazirX stated:
“The survey results stipulate the need to reform certain conditions to aid the growth of crypto investors in the country which will result in economic prosperity. The tax regime needs to be balanced to encourage participation and revive trading volumes.”
With Indian investors eyeing international exchanges to circumvent taxes comes the risks associated with trading on non-KYC compliant exchanges with little or no oversight. ZebPay CEO Avinash Shekhar added:
“While India’s crypto tax policy is a step forward, reconsidering certain aspects will help build a more supportive regulatory environment for all industry stakeholders and will ultimately contribute to overall economic progress.”
Related: Bollywood A-lister-backed GARI token plunge sparks rug pull rumors
GARI, a token launched by an A-list celebrity from Bollywood, Salman Khan, plunged 83% in value in a matter of hours on Monday. While GARI Network brushed off the price depreciation as a “market event,” investors suspected a rug pull event.
Out of the lot, nearly 2,300 or 24% of the surveyed investors shared their interest in trying out international crypto exchanges to avoid paying TDS during trade cycles while 29% confirmed to have drastically reduced their trading activities.
GARI Network conducted an internal evaluation and found no evident hacks that could topple the token’s prices. The company stated:
“So far this looks like a market event. We assure our community that ALL tokens are safe in the respective reserves.”
Over 7 million OpenSea user emails have been fully exposed after a data leak from the marketplace’s automation vendor in mid-2022, giving scammers new opportunities for phishing. Is your email at risk?
KikyoMessari has laid off 15% of its full-time staff as part of a restructuring to focus on its core products amid ongoing challenges in the crypto industry. This follows a broader trend of workforce reductions across major tech and crypto firms in response to uncertain market conditions.
WeatherlyTravis Ford, 35, CEO and co-founder of Wolf Capital, pleaded guilty to conspiracy to commit wire fraud. He faces up to five years in prison, with sentencing pending.
CatherineWhatsApp is developing a feature that allows users to create personalised AI chatbots with custom traits, profiles, and images. This feature, currently in development, will be integrated into the app with a dedicated tab for managing and exploring AI characters.
AnaisIndian Railways is issuing NFT-based train tickets for the MahaKumbh Mela, using blockchain technology to enhance security and efficiency for millions of pilgrims. The collaboration with Chaincode Consulting and the use of Polygon blockchain ensures a seamless, digital experience for travelers to this historic event.
JoyDays after pledging "More Speech and Fewer Mistakes," Meta is blocking links to competitors. This blatant contradiction raises a critical question—does Meta fear losing users to rivals, or is this just another case of selective free speech?
CatherineScaleBit, a BitsLab subsidiary, has flagged a critical Uniswap Web3 wallet flaw that could expose seed phrases to attackers with device access, posing a serious DeFi security risk.
KikyoTether is moving its headquarters to El Salvador, attracted by the country's crypto-friendly policies and tax benefits. The relocation is a key step in enhancing El Salvador's role as a digital asset hub while supporting Tether's expansion.
WeatherlyPump.fun rival, Pump Pumpkin, which launched only in December 2024, openly admitted to dumping its own token on investors, reportedly profiting $800,000. Was this a calculated move or a reckless act of self-sabotage?
CatherinePolymarket users have placed $876,000 in bets on whether Donald Trump will mention "crypto," "bitcoin," or "dogecoin" during his inauguration speech. The platform has seen a surge in trading, with over $1.89 million in total volume, reflecting growing interest in predicting political events related to cryptocurrencies.
Anais