Crypto trading volume in India plunges even further as Mobikwik shuts down payment service – Bitcoin Exchanges News
Cryptocurrency trading volumes in India have plunged further on exchanges as traders mull over the 30% taxation of crypto. Additionally, popular payment service provider Mobikwik has discontinued service on exchanges.
India’s Crypto Exchange Volume Plunges Even Further
The volume of cryptocurrency exchanges in India continues to decline after the government started taxing crypto income at 30% without allowing any compensation or deduction of losses.
According to crypto research firm Crebaco, cryptocurrency trading volumes have fallen compared to last week on all major exchanges, Moneycontrol reported. Wazirx suffered a 72% decline in trading volume, Coindcx 52% and Zebpay 59%.
Additionally, MobiKwik reportedly withdrew its services from the exchanges on April 1 amid unclear regulations. Mobikwik was one of the preferred payment methods for buying cryptocurrencies on exchanges.
A crypto exchange official was quoted by the publication as saying:
Mobikwik gave no specific reason for withdrawing its services. We have just been told that they will no longer be associated with the exchanges.
Last week, Nasdaq-listed cryptocurrency exchange Coinbase announced that it was fully launched in India and users could transfer funds to purchase crypto using the Unified Payments Interface (UPI) system. . However, the National Payments Corporation of India (NCPI), which created UPI, responded by stating that no crypto exchanges use the UPI system.
On July 1, another damaging tax will come into effect. Crypto transactions will be subject to a 1% withholding tax (TDS). A member of Indian parliament recently explained why this tax will kill the crypto industry.
Meanwhile, the Indian government is still working on a framework for crypto. Finance Ministry officials would consult with international organizations including the International Monetary Fund (IMF) and World Bank, as well as the Reserve Bank of India (RBI) and other national regulators.
What do you think of the drop in Indian trading volumes after the entry into force of the 30% tax and the withdrawal of Mobikwik from the exchange service? Let us know in the comments section below.
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