Indian users on the cryptocurrency exchange Binance have increased dramatically. This took place after the Indian government started taxing cryptocurrency transactions. However, after the new tax laws went into force, daily trading volumes at certain significant cryptocurrency exchanges with headquarters in India decreased by almost 90%.
Indian clients on Binance are at an all-time high.
The number of new Indian clients joining Binance, a global cryptocurrency exchange, increased. So, according to information released by Bloomberg on Tuesday, a 1% expense deducted at source (TDS) came full circle in July.
In August, there were 429,000 downloads of the Binance app in India. The distribution was also added, keeping in mind that this is the highest number for the current year. Interestingly, daily trading volumes at a few large digital currency exchanges with India-based headquarters are allegedly down more than 90% since the 1% TDS delivered results. A new 30% tax on gains from cryptocurrency assets is imposed in addition to the 1% TDS. Losses from cryptocurrency trading cannot be deducted from payments, either. The banking system offers only sporadic assistance to Indian cryptocurrency exchanges. Users will find it challenging to transfer funds into and out of trading platforms.
In April, Coinbase attempted to expand its business in India but rapidly encountered issues with the UPI payment mechanism. Since January but not since July, FTX, a different foreign-based bitcoin exchange, has seen an increase in app downloads. In India, there were over 40,000 downloads in January, nearly 96,000 in July, and 52,000 in August.
Wazirx, a different Indian cryptocurrency exchange, showed a decline in monthly app downloads from roughly 596,000 in January to 92,000 in August.
Again when Binance’s app downloads increased, the publication said that user sign-ups were declining at certain significant Indian cryptocurrency exchanges. Data from market intelligence company Sensor Tower shows that Indian cryptocurrency exchange Coindcx’s app downloads dropped from 2.2 million in January to 163,000 in August.
An essential piece of information to the news source by a Binance spokesman regarding whether the exchange has begun to collect transaction taxes from users in India. The corporation “is actively evaluating the situation and will make further comments in due course,” according to the statement.