EN 
VI Cash flow from the field cryptocurrency in India is flowing out since the country imposed a draconian tax regime on trading activities crypto domestic.
According to a study from the Esya Center, crypto users in India have moved more than 3.8 billion USD cryptocurrency trading from domestic crypto exchanges to international exchanges from February to October 2022.
Traders cryptocurrency India is probably no longer interested and is gradually giving up the game because it has to bear income tax obligations of up to 30% and 1% tax per crypto transaction (TDS). Since the tax was implemented in July 2022, there have been 429,000 downloads Binance as of September, three times that of CoinDCX exchange. While domestic exchanges lost 81% trading volume after four months of controversial tax law.
At the time the tax policy came into effect, Nischal Shetty – CEO of WazirX, who once described 1% TDS as the worst case scenario for the industry, said that Indians will “seek to not participate” in the system in the future. water and then will "migrate massively" to the outside.
The Esya report also said that the current tax structure could lead to a loss of about $1.2 trillion in domestic trading volume if the government keeps the tax regime in place for the next four years.
In addition, the Esya researchers recommend that authorities change the TDS from 1% per transaction to 0.1%, which is the equivalent of a stock transaction tax. They also recommend allowing losses to cover gains and setting up a progressive tax on gains instead of a fixed 30% tax.
As a country where imports exceed exports at an all-time high of $36.4 billion, India needs cash inflows instead of outflows as it is now. The latest findings could put pressure on authorities to stem the flow of money abroad through cryptocurrency, which widens India's current-value deficit.
