Bitbns Ranks as Largest Indian Crypto Exchange, Raising Concerns on Reported Volumes

• Indian Crypto Exchange Bitbns has as a market share of 79.1%. 
• Bitbns is accused of inflating trading volumes to maintain its dominant position in the market, which is not yet confirmed.

In a recent study conducted by CoinGecko, Bitbns, a leading cryptocurrency exchange in India, has emerged as the largest player in the country’s crypto ecosystem. That captured an impressive market share of 79.1% among the top four centralized exchanges. However, concerns have been raised regarding the dominance of Bitbns and its reported trading volume. As allegations of manipulating figures and utilizing deceptive tactics to inflate volumes have come to light. However, the assertion has not yet been confirmed by any of the officials. Additionally, there might have been a glitch in the cryptocurrency tracking platform ConGecko.

How Bitbns Witnessed Massive Trading Volume?

According to the study, which was published in a Medium blog post, Bitbns has been accused of engaging in questionable practices since 2018. Specifically the use of “fake volume bots to create artificial trading activity.” Also, these bots have consistently generated volumes exceeding $10 million. Even after the implementation of a 1% tax deducted at source (TDS) rule. Which reduced trading volumes on other Indian crypto exchanges.

According to the tweet from Crypto Hanuman (the profile followed by Binance CEO and other high profiles), the Bitbns exchange reported a total trading volume of $2.5 billion between July 2022 and November 2022. If these figures are accurate, Bitbns would be liable for a TDS amount of $25 million (equivalent to 200 crores in INR). However, the Ministry of Finance announced in December 2022 that they had collected approximately 60 crores in INR from the 1% TDS levied on the entire Indian crypto industry.

This stark disparity has raised questions regarding the government’s oversight and the effectiveness of the TDS implementation. How could the government only collect 60 crores in INR from all Indian exchanges. While Bitbns alone had a reported TDS liability of 200 crores based on its claimed trading volume?

The allegations surrounding Bitbns’ dominance and reported trading volume underscore the need for increased transparency and regulatory scrutiny within India’s crypto industry. With the sector gaining significant traction in recent years, it becomes imperative for regulators and industry players to ensure fair practices and accurate reporting. Fostering a healthy and trustworthy ecosystem for investors and traders alike. In addition, if Bitbns answered for this, it would help crypto investors build more trust.

Status of Top Crypto Exchanges in India

According to the latest data, Bitbns continues to dominate the Indian crypto market. Maintaining its position as the largest cryptocurrency exchange in the country. With an impressive market share of 79.1% across the top four centralized exchanges, Bitbns remains unchallenged.

WazirX holds the second spot with an 11.1% market share, closely followed by CoinDCX at 6.6%, and ZebPay at 3.1%. These rankings have remained unchanged throughout the year, indicating relative stability in the market share distribution among the top exchanges.

However, the landscape was quite different in early 2022 when WazirX held the top position, reaching a market share range of 38.7% to 65.3%. But Bitbns surpassed WazirX in June 2022, causing WazirX’s market share to drop continuously for three consecutive months, eventually reaching 34.6%.

Bitbns has since demonstrated remarkable growth, more than doubling its market share from 37.0% in June 2022 to an impressive 82.0% by December 2022. Apart from Bitbns, WazirX, CoinDCX, and ZebPay, other notable cryptocurrency exchanges and trading platforms catering to the Indian market include Koinbx, BuyUCoin, Coinswitch, and Giottus.

Overall, the Indian crypto exchange market remains dynamic. Bitbns leading the way and the top positions witnessing relatively stable rankings throughout the year.