Crypto volume slump: Majority of traders 'unhappy' with new tax rules, say exchanges

economictimes.indiatimes.com:

WazirX and Zebpay, citing their Trader Sentiment Survey. The survey included about 9,500 respondents throughout the country. The domestic exchanges collectively conducted the survey and included only those traders who were active from the beginning of the year till April 15. The survey aims to highlight the mood of crypto traders over higher taxation. According to the results, 83 per cent of traders believed that the recent tax implementation deterred their trading frequency. 29 per cent of the respondents said that they traded less than the pre-tax period.

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In the wake of the crypto market crash, the prices of hardware used to support the mining of crypto assets are also falling dramatically. For example, a high-end graphic card is now almost 45% cheaper compared to its price a few months ago.

About every fourth respondent is contemplating to shift their trading activities to international exchanges, thanks to higher taxation in India. According to the survey, 27 per cent of the respondents sold over 50 per cent of their crypto holdings before the beginning of the new fiscal year, whereas 57 per cent booked profits in up to 10 per cent of their holdings. The exchanges claimed that revenue from tax collections for the government is set to decline as 27 per cent of customers are set for lesser trade than earlier owing to the current taxation policy after the implementation of new norms. Explaining the difference between the pool of traders and holders, exchanges in their note said that the traders were classified as those who traded every day, more than five times a week, or at least more than twice a week. On the other hand, long term investors are holders. Avinash Shekhar, CEO of