Changpeng Zhao, CEO of Binance, attending an event in the global fintech industry in Singapore. At the event in India cryptocurrency He said high taxes on transactions could “kill the industry”.
The Binance CEO’s statement comes after the tax announced by Finance Minister Nirmala Sitharaman in the 2022 Budget announcement. It has been announced that a 30% capital gains tax will be applied to all earnings from cryptocurrency transactions in India.
The government has also mandated a 1% tax at source on all crypto transactions in India. This tax is another kind of tax that will alienate users.
The effects of this taxation were also evident on India’s crypto exchanges after it took effect from 1 July. For example, WazirX, India’s largest crypto exchange by volume, suffered a huge drop. As Koinfinans.com previously reported, the volume of 10.3 million dollars in June decreased to 2.8 million dollars in July.
As of September, WazirX‘s average daily trading volume declined sharply. India’s pre-tax on cryptocurrency transactions fell 88% from the pre-tax to $1.2 million.
Binance, one of the world’s largest cryptocurrency exchanges, was at the center of competition with India’s Executive Directorate (ED), a regulatory agency under the Ministry of Finance, due to its affiliation with WazirX. In August of this year, the ED highlighted in its money laundering investigation among instant lending services that the latter used crypto exchanges to transfer money out of the country, thus accounting for money laundering.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.