India’s cryptocurrency trading volume surges this year plummeted. The FTX meltdown has exacerbated the problem, hurting “sentiment across crypto tokens.” I do not expect recovery in the near future.
Since April, India’s cryptocurrency market is ‘dead’, experts say
Crypto trading volume on major Indian exchanges this year plunged sharply. India’s major exchanges have lost between 34% and 50% of their trading volume since the collapse of crypto exchange FTX, Moneycontrol reported Monday, citing data from research firm Crebaco. But the decline started long before the FTX implosion. Wazirx, one of India’s largest cryptocurrency trading platforms, has lost 97.99% of its trading volume since the beginning of the year until December 22nd.
Crebaco’s CEO, Sidharth Sogani, told the publication:
I don’t think much of this recent volume plunge was caused by his FTX. The Indian market has been dead since April 2022.
,” he continued.
In this year’s Federal Budget 2022, the Indian government will impose a 30% income tax on virtual digital assets, including cryptocurrencies and non-fungible tokens (NFTs), We have imposed 1% TDS on all transactions of Rs 10,000 ($121) and above.
Menon emphasizes:
Unless something dramatic happens with this year’s budget, trading volumes will steadily recover soon. It is not.
Impact of FTX collapse on Indian cryptocurrency industry
“Indian users have not been significantly affected by FTX, apart from sentiment. The negative sentiment surrounding the sector has been exaggerated by FTX,” a top cryptocurrency exchange executive told the publication.
, moved to Binance instead of FTX. Binance had peer-to-peer (P2P) transactions, but FTX did not. If you have INR, the only forex you can trade is Binance and Kucoin.
Sogani similarly explained that the FTX meltdown hurt “sentiment across crypto tokens.” He added:
India, on the other hand, has yet to come up with a policy on cryptocurrencies. The Indian government plans to discuss crypto regulation with G20 countries to establish a technology-driven regulatory framework for crypto-assets, the country’s Finance Minister previously revealed. The government recently updated parliament on the status of the cryptocurrency bill.
India’s central bank, the Reserve Bank of India (RBI), continues to call for a ban on all cryptocurrencies such as Bitcoin and Ether. RBI Governor Shaktikanta Das recently said the next financial crisis will come from cryptocurrencies if they are allowed to grow.
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