Binance Sees Record Increase in Indian Users After Government Starts Imposing New Crypto Tax

After the Indian government imposed taxes on crypto transactions, Binance's Indian users have increased by more than tenfold. Since the new tax rules were implemented, trading volumes on some of India's largest cryptocurrency exchanges have fallen by more than 90%.

Record number of Indian users visit Binance

Bloomberg reported Tuesday that Indian users signed up on Binance, a global crypto exchange. This was after TDS (1% tax deducted at source) became effective in July.

According to the publication, India saw 429,000 Binance app downloads in August. This is the highest number this year. However, trading volumes at major Indian cryptocurrency exchanges have dropped by more than 90% since the 1% TDS was implemented.

Rohan Misra (CEO at SEBA India), a subsidiary of Swiss-based SEBA Bank AG commented on the new tax.

Recent tax regulations are not clear about whether crypto derivatives transactions involving futures do not qualify for the 1% tax at source.

On top of the 30% tax that crypto assets gains attract, the 1% TDS will be levied. Crypto trading losses cannot be offset against income. Indian crypto exchanges also have limited support from banks, making it difficult to transfer money into and out of trading platforms.

Another cryptocurrency exchange, FTX was able to see an increase in app downloads from January, but not since July. It saw approximately 40,000 Indian downloads in January, nearly 96,000 in July and 52,000 August.

Coinbase Global Inc. was listed on the Nasdaq and saw its app downloads drop to 16,000 in August, from 31,000 in June. Coinbase attempted to expand in India in April, but ran into problems with the UPI payment system.

The publication stated that while Binance's app downloads have soared, other major Indian cryptocurrency exchanges are experiencing a decline in user sign-ups. According to Sensor Tower data, Indian crypto exchange Coindcx saw its app downloads drop to 163,000 in August, from 2.2 Million in January.

Wazirx, another Indian crypto exchange, saw its monthly app downloadings drop to 92,000 in August, from 596,000 in January. Recently, the exchange had a dispute with Binance CEO Changpeng Zhao. Zhao encouraged Wazirx users transfer funds to Binance. The Indian Enforcement Directorate (ED), which had frozen Wazirx's bank account in August, was unfrozen this week.

A spokesperson for Binance told the news outlet that they are currently monitoring the situation and would make additional announcements when necessary.

What are your thoughts on Indian cryptocurrency investors using Binance? Please comment below.

By: Kevin Helms
Title: Binance Sees Record Increase in Indian Users After Government Starts Imposing New Crypto Tax
Sourced From:
Published Date: Thu, 15 Sep 2022 03:30:33 +0000

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