Indian exchanges have seen a sharp drop in crypto trading volume since the implementation of India’s 1% source withholding tax rule (TDS) on digital assets on July 1, with daily trading volumes on exchanges ZebPay, WazirX, CoinDCX, Giottus down 60% % to 87%.
Binance-backed Indian exchange WazirX traded $3.8 million on July 2, the day after the TDS tax went into effect, compared with less than two hours in early July last year, CoinGecko data shows. can achieve this goal.
Rajagopal Menon, vice president of WazirX, said that while long-term cryptocurrency holders are still buying and selling, market makers and high-frequency traders have disappeared. Traders are also doing more peer-to-peer trading and migrating to decentralized exchanges.