After the new tariffs are implemented from July, downloads Binance in India has skyrocketed, far ahead of any other competitor.
There have been 429,000 new Binance registrations after India's 1% trading tax officially went into effect in July. Exchanges crypto in the country has begun to deduct taxes, because of that, users "migrate massively" to Binance and FTX.
Harsh tax regime
Indian users are gradually giving up the game because they have to “fulfill” their 30% income tax and 1% tax obligations for each transaction.
India started imposing a huge tax rate of 30% on crypto in April, trading volume has started to slide since then. Thoughts were "suffering" enough, the situation became more "dreary" when the government decided to implement an additional 1% TDS - tax withheld at source - another method of tax collection on the income assessment of Indian citizens. , up NFT, asset cryptocurrency, metaverse or any kind of transaction blockchain any.
At that time, Nischal Shetty – CEO of WazirX once said that 1% TDS was the worst case scenario for the industry. CoinDCX Policy Director Manhar Garegrat also stated that there will be no more liquidity if TDS is adopted.
Binance "takes off" after India imposes new tax regulations
Faced with the above situation, instead of continuing to suffer the ax, many people have turned to other exchanges to avoid the eyes of the government. Binance India downloads have peaked, almost three times that of CoinDCX. FTX also earned nearly 96,000 downloads in India in July and 52,000 in August, a sharp increase compared to the beginning of the year.
In addition to the dismal trading volume, the top crypto exchanges in India also "failed miserably" with new downloads. CoinDCX has dropped from a peak of 2.2 million in January to 163,000.
Share with Bloomberg, a representative of Binance said that the exchange "is still monitoring the situation and will announce the tax collection in the near future".
The above situation took place amid the escalating conflict between Binance and WazirX – the platform that “was” belonging to Binance in 2019. Specifically, at the time when WazirX was accused of money laundering, the leader of a major crypto exchange. The world's best Changpeng Zhao has decided to reject WazirX and "blame" another party.
In terms of reception, in December 2021, the Government of India proposed to build CBDC and banned “most” coins cryptocurrency. By February 2022, the Minister of Finance again declared it illegal or banned cryptocurrency, crypto is still in the “gray zone”. However, in April, India began to adopt a draconian tax regime and caused the above consequences. Indeed, the crypto industry in this talent-producing land is falling into "extreme difficulty" and the dream of a cryptocurrency "superpower" will forever be unfinished?