The crypto trading volume plunged by over 63% after the implementation of an unpleasant taxation policy from the Indian government on July 1.
According to the new policy, the Indian Government charges 1% TDS on the sale and transfer of cryptocurrency in excess of 10,000 Indian rupees. This amount is equal to $127.
One of the leading crypto exchanges in India, WazirX has seen a 63% drop in the daily trading volume. According to a report from nomics.com, nearly $14.53 million was generated on June 30, dropping to $5.36 million on July 1.
Also Read, Indian Govt. Issues 1% TDS Guidelines for Virtual Digital Assets
While another Coinbase-backed Indian crypto exchange, CoinDCX also fell to $2.09 million on July 1 from US$2.62 million on June 30 with a 20% drop.
Indian authorities have been preparing a regulatory framework for a long time. Recently, the Indian government has charged a gigantic 30% tax on the crypto transaction which has shaken the entire crypto community.
As per Crebaco, a nearly 70% drop in trading volumes has been seen across the major crypto exchanges since April 1.
The intense downward momentum in the trading volume is still running as CoinDCX fell by 33.69% in the last 24 hours. On the other hand, WazirX also descended by 20.08%.
