India’s 30% tax on cryptocurrencies, which met with a public outcry, has deterred the trading frequency of 83% traders, according to a survey conducted by crypto exchanges WazirX and ZebPay.
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Fast facts
- The survey included 9,500 respondents that had actively traded between Jan. 1 and April 15.
- Around 24% of respondents said they are considering moving trading activities to international exchanges, while 29% said they have traded less since the introduction of the tax.
- 27% of respondents sold more than 50% of their crypto holdings before the tax came into effect on April 1, while 57% of respondents sold less than 10% of their holdings.
- 34% traders and 23% holders said they intend to trade less due to the tax, while 45% of long-term investors held on to their crypto portfolios in hopes of a more conducive tax policy in the future, the survey said.
- Daily trading volumes, impacted by the tax effective since April 1, were further impacted by an additional 1% levy, effective July 1, on transactions beyond a certain threshold.
See related article: India’s tax bogeyman is scaring off young crypto investors