Binance Sees Record Growth Of Indian Users After Government Begins Imposing New Crypto Tax – Exchanges Bitcoin News
The number of Indian users of cryptocurrency exchange Binance surged after the Indian government began taxing cryptocurrency transactions. Meanwhile, several major India-based cryptocurrency exchanges have seen their daily trading volumes drop by more than 90% since the new tax regime came into force.
Binance Sees Record Number of Indian Users
Bloomberg reported on Tuesday that global cryptocurrency exchange Binance saw a surge in Indian user signups after the 1% withholding tax (TDS) went into effect in July.
The number of Binance app downloads in India surged to 429,000 in August, the highest number of the year, the magazine added. In contrast, daily trading volumes on several major India-based cryptocurrency exchanges have reportedly fallen by more than 90% since the 1% TDS came into force.
Commenting on the new tax, Rohan Misra, CEO of SEBA India, a subsidiary of Switzerland-based SEBA Bank AG, said:
Under recent tax legislation, it is not clear whether the 1% tax withheld applies to crypto derivative transactions, including futures, in the same way it applies to crypto spot transactions.
The 1% TDS is levied on top of the new 30% tax on profits from crypto assets. Additionally, crypto trading losses cannot be offset against income. Indian crypto exchanges have also faced limited support from the banking system, making it difficult for users to deposit and withdraw money from the trading platform.
Another foreign-based cryptocurrency exchange, FTX, has seen an increase in app downloads since January, but not since July. The exchange saw around 40,000 downloads in India in January, around 96,000 in July, and around 52,000 in August.
However, Nasdaq-listed cryptocurrency exchange Coinbase Global’s app downloads in India fell from about 31,000 in June to 16,000 in August. Coinbase tried to expand his business in India in April, but soon he ran into problems with the UPI payment system.
While Binance’s app downloads have soared, several major Indian cryptocurrency exchanges have seen a drop in user sign-ups, the publication said. Indian cryptocurrency exchange Coindcx’s app downloads fell from 2.2 million in January to 163,000 in August, according to data from market research firm Sensor Tower. .
Wazirx, another Indian cryptocurrency exchange, saw its app’s monthly downloads drop from about 596,000 in January to 92,000 in August. The exchange recently had a public dispute with his CEO of Binance, Changpeng Zhao (CZ), over its ownership, prompting Zhao to urge his Wazirx users to transfer funds to Binance. Wazirx’s bank account, which he had frozen by the Indian Enforcement Agency (ED) in early August, was unfrozen earlier this week.
Asked whether Binance has started collecting transaction tax from Indian users, an exchange spokesperson told news outlets that the company is “currently monitoring the situation and will make further announcements in due course.”
What do you think about Indian crypto investors choosing to use Binance? Let us know in the comments section below.
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Binance Sees Record Growth Of Indian Users After Government Begins Imposing New Crypto Tax – Exchanges Bitcoin News
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