Indian Crypto Exchanges Witness Surge Despite Multiple Hindrances

Reserve Bank of India (RBI) Reveals Upcoming CBDC Plans
  • An additional element came into play in India: a 1% TDS from July 1st, 2022.
  • Prices of cryptocurrencies like Bitcoin and Ethereum have continued to plummet.

Inflation, rate hikes, and increasing fuel prices have all affected the volume of crypto exchange activity. From July 1, 2022, onwards, an additional element came into play in India: a 1% TDS. The Finance Bill 2022 added a new clause in the Income-Tax Act 1961, known as 194S, which mandates that 1% of the transaction value be deducted as Tax Deducted at Source on every sale of crypto. When selling a cryptocurrency, the seller must pay a fee to the crypto exchanges, which are then responsible for depositing the fee with the IT department.

Difficulty Continues For India Crypto Sector

Prices of cryptocurrencies like Bitcoin and Ethereum have continued to plummet since November last year. Since 2018’s crypto winter, this might be the longest of all time. Currently, the Bitcoin hashrate is at its highest level. Before stabilization, exchanges said they would concentrate on developing new products and improving customer service. 

According to an official statement, one of India’s only advocacy groups for the crypto sector, the Blockchain and Crypto Assets Council (BACC), was terminated by its parent organization, IAMAI. India’s crypto business has already been battered by high taxes, payment processors blocking exchanges, falling trading volumes, and a worldwide bear market. This latest development would only serve to devastate the industry further.

Despite all of the preceding obstacles, the current trade volume suggests that something else is going on. Cryptocurrency exchanges have seen an increase in trade volume recently. As per crypto enthusiast NG exhales, the 24-hour total volume of $152,250,490 for Giottus was recorded on July 13. In addition, Bitbns, CoinDCX, and WazirX, other exchanges, have also seen a rapid surge.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.