The number of cryptocurrency transactions has dropped a lot, especially in India, where a tax was put on them. The Enforcement Directorate (ED) recently raided cryptocurrency exchanges like WazirX and CoinDCX. For more crypto-related topics and stock forecasts, you may visit stockhax.com now!
Many of the most well-known cryptocurrencies, like Bitcoin and Ethereum, lost more than 60% of their value. In 2022, cryptocurrencies like Solana and Shiba Inu lost more than 90% of their value. Even in India, cryptocurrency exchanges like Wazir X have seen a significant drop in volume. It has dropped by more than 75% in the last few days.
Dogecoin is the only cryptocurrency that doesn’t seem to follow this trend
When Elon Musk took over Twitter, there were many more dogecoin transactions immediately. Shortly after Elon Musk bought Twitter in October, the amount of dogecoin went up by an incredible 1,300%.
The Finance Minister added Section 115BBH to the 2022 Budget, which was presented on February 1. This section said that profits from trading cryptocurrencies on or after April 1, 2022, would be taxed at 30% (plus the applicable surcharge and 4% cess). If you made money after that date, you had to pay this tax. This tax rate is the same as India’s highest income tax band. Also, all cryptocurrency transactions had to have a TDS of 1% starting in July 2022.
Most of the companies that are being blamed have some kind of link to China. People said more than Rs 1 trillion was washed through the crypto exchanges. Most of these cryptocurrency traders also had their accounts frozen by ED.
On April 1, 2018, the tax of 30% that was supposed to be put on digital assets like cryptocurrency began to be collected. Some people said that this change by itself would have a small effect on the cryptocurrency business in India, but so far, the facts show that this is not the case. Crebaco Global, a company that studies the crypto and blockchain industries, has found that most cryptocurrency exchanges in India have seen a big drop in their volume and site traffic.
The number of transactions dropped by $6,92,092 in the first four days after the 30% tax went into effect, compared to March 31, 2022.Based on the data collected by Crebaco, all top cryptocurrency exchanges lost money. The volume of WazirX dropped by 40%, the importance of CoinDCX dropped by 52.9%, the importance of Bitbns dropped by 8.9%, and the importance of Zebpay dropped by 76%.
People in the cryptocurrency business were expecting something like this to happen, but they hope the price drop will last for a while.
There are two sides to every situation: solving problems and finding happiness.Sidharth Sogani, the CEO of Crebaco Global, says that there are too many taxes. A survey of 97 blockchain engineers showed that most are thinking about moving to another country,” he says.Invest in Bitcoin smart contracts and trade stable coins and other cryptocurrencies on the most reliable trading platform.
Some think that taxes make virtual and digital assets more popular and accepted. NFT stands for “non-fungible token.” At the very least, people know a lot more than they did before about how to look into the tax effects of NFTs and cryptocurrencies. People no longer think that people don’t know if cryptocurrency is legal or not because of taxes. Subramaniam says that the recent drop in trading of NFTs may be due to a general trend in the market. But we can’t say the drop is because of taxes. He does say, though, that the taxes are higher than usual.
