Binance Sees Record Increase in Indian Users After Government Starts Implementing New Crypto Tax – Bitcoin News Exchanges

Binance Sees Record Increase in Indian Users After Government Starts Implementing New Crypto Tax – Bitcoin News Exchanges

The number of Indian users on the cryptocurrency exchange Binance has increased after the Indian government started charging taxes on crypto transactions. Meanwhile, daily trading volume on some major Indian cryptocurrency exchanges has fallen by over 90% since the new tax rules came into effect.

Binance sees record number of Indian users

The number of Indian user registrations has increased on the global crypto exchange Binance after a 1% tax deducted at source (TDS) went into effect in July, Bloomberg reported Tuesday.

The number of downloads of the Binance app in India jumped to 429,000 in August, the publication added, noting that this number was the highest this year. In contrast, the daily trading volume of several major Indian cryptocurrency exchanges is reported to be down over 90% since the 1% TDS came into force.

Commenting on the new tax, Rohan Misra, CEO at SEBA India, a subsidiary of Switzerland’s SEBA Bank AG, opined:

Recent tax regulations are not explicitly clear on whether the 1% withholding tax applies to crypto derivative transactions involving futures, as it does to crypto spot transactions.

TDS of 1% is levied on top of the new 30% tax on crypto asset gains. Moreover, losses in cryptocurrency trading cannot be compensated by income. Indian crypto exchanges also face limited support from the banking system, making it difficult for users to transfer money to and from trading platforms.

Another foreign 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, nearly 96,000 in July and 52,000 in August.

However, the crypto exchange Coinbase Global Inc. Nasdaq-listed app downloads in India fell to 16,000 in August from nearly 31,000 in June. Coinbase tried to expand its operations in India in April, but quickly got into trouble with UPI payment system.

While the number of downloads of Binance’s app has soared, some major Indian cryptocurrency exchanges are seeing a decline in user registrations, the publication reports. Downloads of Indian crypto exchange Coindcx’s app fell to 163,000 in August from 2.2 million in January, according to market intelligence firm Sensor Tower.

Another Indian crypto exchange, Wazirx, saw monthly app downloads drop to 92,000 in August from around 596,000 in January. The exchange recently had a public dispute with Binance CEO Changpeng Zhao (CZ) over its own propertywhich prompted Zhao to encourage Wazirx users to transfer funds to Binance. Wazirx’s bank accounts were frozen by India’s Enforcement Directorate (ED) in early August, but they thawed earlier this week.

As for whether Binance has started collecting transaction tax from users in India, a spokesperson for the exchange told the news outlet that the company is “currently monitoring the situation and will make further announcements in due course.”

Tags in this story

1% TDS, Binance, binance india, coinbase india, FTX India, India, Indian crypto exchanges, Indian Cryptocurrency Exchanges, Indian tax, itself India, tax deducted at source

What do you think about Indian cryptocurrency investors opting to use Binance? Let us know in the comments section below.

Binance Sees Record Increase in Indian Users After Government Starts Implementing New Crypto Tax – Bitcoin News Exchanges

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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