Is There a Blow to Crypto from Indian Taxes?

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A transaction amount of Rs 32,000 was transferred from Indian crypto exchange to international exchange. The Indian government has announced a 30% tax on income from cryptocurrencies. Following this, there was a crypto transfer worth Rs 32,000 crore, between February and October 2022, from domestic markets to exchanges.

The study was conducted by the Asian Center of Delhi and named Virtual Digital Asset Tax Architecture in India. Of the total amount, 25,300 crore has been released in the first six months of 2022. It is also expected that the country’s current budget structure may result in a loss of $ 99.3 trillion in trade through changes region in the coming months.

“60.8% of the decrease in the volume of crypto exchanges of Central India is due to the situation in the internal market or the tax office in India from February to October 2022, and the important situation in these exchanges,” says the study.

Passing Through Indian Exchanges and Foreign Exchanges

The national crypto exchange had a 15% loss in trading volume in February and March 2022. They still lost 14% between April and June. Between July and October, they lost 80% of all sales. Provision of 1% TDS is effective from July

Cryptocurrency loss payment is not accepted till April

According to the report, there is evidence that Indian centralized exchanges will suffer as overseas centralized crypto exchanges gain popularity from February 2022. According to “strong evidence”, many Indian investors , around 1.7 million, moved because of the country’s crypto tax. walking. Downloads of local cryptocurrency exchanges decreased by 16% between July and September. However, downloads for currency exchange have increased.

“We find that the main (unexpected) effect of the policy is to move domestic activities and money to foreign markets. Therefore, we expect a very negative effect on money taxes, and the reduction of business traceability – which contradicts the two main goals of the current legislation, ” adds study.

The Fall of Crypto in 2022

The global crypto market has had a tumultuous year, certainly the worst year for cryptocurrencies. The total market capitalization increased from USD 2 billion in 2021 to USD 819 billion on January 4, 2023. That year saw a major meltdown, including the FTX revolution. The price of the largest crypto token, Bitcoin, has seen a 70% decline since its peak in November 2021.

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