KYC-compliant cryptocurrency exchanges in India have witnessed a steep drop in trading volumes after 1 per cent TDS on crypto transfers became applicable from July 1.
Data from Nomics, a crypto data firm, and Crebaco, a crypto research firm, highlight that the TDS on crypto transfers, which was proposed in the Union Budget this February has deeply impacted trading volumes across several KYC-compliant crypto exchanges in India.
As per data compiled by Crebaco, trading volumes on WazirX exchange decreased by 82 per cent. The drop was approximately 70 per cent for CoinDCX exchange and 76 per cent for ZebPay exchange.
Data sourced from Nomics also concluded the same.
Nomics’ data highlighted that trading volumes on WazirX took a steep fall in the past week, especially after July 1.
Trading volumes on crypto exchange CoinDCX also took a hit after TDS became applicable last Friday.
Since last Friday, trading volumes on the cryptocurrency exchange ZebPay also slumped following the implementation of TDS on crypto transfers.
Business Today has reached out to all of the aforementioned cryptocurrency exchanges. The copy will be updated once we receive a response.
One per cent TDS on crypto transfers was proposed in the Union Budget this February by Finance Minister Nirmala Sitharaman along with a 30 per cent tax on crypto gains.