Indian crypto exchanges are experiencing a surge in trading volume since finance minister Nirmala Sitharaman announced a 30% tax on crypto transfers at the budget session of parliament on Tuesday.
Fast facts
- Binance-owned WazirX’s 24-hour trading volume has soared by 56.26% while its WRX token price jumped 25.3%, as of press time.
- The trading volume of local competitors Unocoin and CoinDCX also surged by 50.18% and 9.09% respectively.
- While a law that defines the legality of crypto still does not exist in India, the government’s decision to tax digital assets is expected to boost investor confidence by legitimizing the billions of dollars worth of local crypto investments.
- Indian exchanges, including WazirX CEO Nischal Shetty, welcomed the planned taxation, citing steps towards regulatory clarity.
- But a 30% tax, the highest tax band in India, appears to some observers to be punitive and may discourage investors.