According to the latest data concerning the crypto market in India, there is a substantial drop in all crypto-related activities in just ten short days after the upper house of the parliament in the country, Rajya Sabha, implemented the new Finance Bill 2022 that imposes 30% tax on everything relating cryptocurrencies.
As per the report of Crebaco, a leading blockchain analytic company from India, the new crypto Bill caused certain crypto exchanges to lose up to 70% of their trading volume. Speaking of the decline of the crypto trading volume in India, the number one crypto exchange in the country, WazirX, went from $47.8 million on the 1st of April, down to $13.2 million on the 10th of April.
Next, we have the second-largest Indian crypto exchange by trading volume, Coindcx, which reported $12.1 million on April 1st, going all the way down to $5.7 million on the 10th. Bitbns is the third-largest crypto exchange in India, started the month with $9.6 million, and consequently dropped to $5.6 on the 10th, while Zebpay, the fourth-largest, started with $4.4 million, and is now down to $1.8 million.
In addition to the dire numbers, the Finance Bill 2022 is also responsible for the termination of many partnerships between the crypto exchanges and their payment processors. In particular, Unified Payments Interface is one of the largest payment providers to cut ties with all crypto exchanges in the country.
Similar to UPI, MobiKwik also terminated its partnership with WazirX and the rest of the crypto exchanges in the country, after receiving a warning from the Indian government. This practically drove Coinbase off the country, being that the giant crypto exchange was forced to suspend all services regarding crypto transactions.
Many experts in the crypto community predicted that the 30% taxation will seriously damage the crypto market in India, which is why there is a significant drop in crypto activities at the moment.
And not only that, but many believe that this Bill will also negatively reflect on any potential lucrative blockchain partnerships in future as well. Which would definitely be a shame, considering the potential of a vast market such as the Indian.
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