In her budget speech in February this year, Finance Minister Nirmala Sitharaman had said that 30 per cent tax would be levied on profits made by investing in cryptocurrencies.
Those investing in crypto in India can see the impact of the falling cryptocurrency prices in the global market. In the last few days, there has been a big drop in the number of people trading in cryptocurrencies in the country. The country’s three major cryptocurrency trading exchanges ZebPay, WazirX and CoinDCX have confirmed the decline in transactions in cryptocurrencies. The biggest reason for the decline in crypto business is the new tax rules coming into effect from July 1 in the country.
Let us tell you that from July 1, a provision has been made by the government to levy one percent TDS on transactions done for cryptocurrencies. Since then the interest of domestic crypto investors has started to decline. In the month of July, there has been a decrease in the daily volume of crypto from 60 to 87 percent. Other exchanges CoinGecko and Giottus also reported a significant drop in trading volume. Let us tell you that in her budget speech in February this year, Finance Minister Nirmala Sitharaman had said that 30 percent tax will be charged on profits invested in cryptocurrencies, while 1 percent TDS will also be payable on every transaction done in cryptocurrencies. . While declaring these taxes, investment in all types of NFTs was treated as separate from investment in stock market and bonds.
According to the information, due to the continuous breakdown of NFT prices in the global markets, the trading volumes of different digital currencies were already under pressure. Now after the law of levying TDS on the transactions of crypto, investors are assuming that their profits will be reduced by this. Since the record jump in the prices of bitcoin and other cryptocurrencies in November last year, its prices have been falling continuously. On Tuesday 5th July also, a mixed trend is being seen in the prices of cryptocurrencies. During this time, the price of bitcoin has seen a jump of up to 4.78 percent. Bitcoin is trading at Rs 16,45,000 on Tuesday at 10:30 am. At the same time, Ethereum is also trading at Rs 93,737 with a gain of 7.61 percent. At present, 80 to 82 percent is being seen less as compared to June 30. An analyst expressed the possibility of impact on trading volumes on account of TDS. Traders fear that their capital will freeze due to TDS.
On the other hand, increasing financial challenges in the global cryptocurrency market are making it difficult for exchanges to operate. Employees are also being laid off due to work stress. However, amid these developments, the beginning of the week saw a rise in the prices of most cryptocurrencies. TeraUSD has fallen June 12, 2022, and according to a statement from Wald, its exchanges have seen withdrawals of 19.77 million during the crypto market downturn, with the Celsius network halting withdrawals. The exchange also said that it is facing financial challenges due to factors other than market volatility. Crypto lending platform Celsius said it has fired 25 percent of its workforce, or 150 employees.
(The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Investing money on behalf of loktej.com to anyone That is never advised here.)
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