Indian Investors Flee to Foreign Exchanges to Avoid Taxes

India According to the new research report prepared by the based market research company Esya, cryptocurrency investors flock to the stock markets abroad due to the high tax rates set by the government.

In the report he prepared, Esya examined the effects of the 30% crypto tax that came into force in the country in the past months.

Experts determined that the heavy tax policy applied did not lead to a significant increase in revenues. According to the data collected, the trading volume of domestic stock exchanges fell sharply with the start of taxation, while the average volume value in global stock markets remained stable.

Esya concluded that $3.85 billion worth of crypto-induced foreign exchange outflows occurred in the February-October range.

The Government Has Not Achieved Both Goals

In its detailed report, the research firm claims that the main motivation of the Indian government in crypto taxation has not been realized at all.

With the industry regulation, the Indian government hoped to give access and taxation to all transactions made by crypto investors in the country. However, due to the nature of crypto, investors who easily moved their assets to exchanges abroad deprived the government of both information and a large tax revenue.

Goods experts pointed out that if the tax application does not change, a volume loss of $ 1.2 trillion may occur in domestic stock markets until 2026.