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There has been 30-40% dip in India crypto volumes in past 30 days over tax uncertainties: WazirX

cryptocurrency | IST

There has been 30-40% dip in India crypto volumes in past 30 days over tax uncertainties: WazirX

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Beginning April 1, all forms of virtual digital assets (VDA) or crypto assets that are sold at a profit have begun to attract a tax of 30 percent. The announcement was made by Finance Minister Nirmala Sitharaman in her Union Budget speech this year. The markets are still trying to come to terms with the new taxation.

Over the past few months, cryptocurrencies have been in a state of flux -- prices have dipped more than risen and the global market capitalisation continues to be below $2 trillion, despite robust growth, especially in the latter half of last year. To understand the cryptocurrency volumes, impact of the newly implemented "crypto taxes" in India, and the road ahead this year, CNBC-TV18 spoke to Nischal Shetty, Founder and Chief Executive of WazirX.
Shetty said there is some dip in the number of new "virtual assets" up across the industry.
He said, “The confusion around taxes is probably bigger issue right now; the future of the TDS, and everything coming in. Overall, volumes wise, there has been a dip of 30 to 40 percent in the last, let us say, 30 to 45 days in India. But globally, also there has been a 10 percent so India has taken a steeper drop in trading volumes, mostly because of these recent changes. But even globally, there's been some dip in crypto due to the market conditions.
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Beginning April 1, all forms of virtual digital assets (VDA) or crypto assets that are sold at a profit have begun to attract a tax of 30 percent. The announcement was made by Finance Minister Nirmala Sitharaman in her Union Budget speech this year.
Shetty said, “The markets are still trying to come to terms with the new taxation. We are also awaiting, further clarity, hopefully, on the TDS, and maybe a reduction of the TDS, from 1 percent to maybe 0.01 percent, which will really work well for the industry.”
He added, “There is some sense of deeper understanding amongst the participants about the taxation. There was a lot of confusion, which is clearing out. In terms of adoption, I would say, the interest is still very high, and for obvious reasons, because it is the norm globally, crypto is growing really fast.”
On crypto markets in 2022, Shetty said, “Crypto usually moves in cycles, there has this one or two years of rapid growth and I would say that happened in the last two years. Then you have a period of building and seriousness and some ideas not really coming to conclusion or not being executed, I think we are entering that phase.”
He added, “So I see the next few years as a period of building and more maturity coming into the sector and this happens every cycle.”
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