Several notable Indian crypto exchange platforms spoke about the current bear market and their attempts to survive through it all. WazirX, CoinDCX, CoinSwitch, etc., are a few leading names whose senior executives and employees shared their current plight in an article published on Coindesk.
The six eminent Indian crypto platforms- WazirX, Giottus, BuyUCoin, CoinSwitch, CoinDCX and ZebPay shared how they are reducing costs wherever possible. Further, they’ve resorted to renegotiating partner contract terms, initiated layoffs, looked into new revenue model sources, canceled employee pay hikes, and rebranded themselves for a financial runway extension in the exiting market where they can lose money anytime.
Indian crypto exchanges and their survival in the market have concerned the community since February 1, 2022. On this day, an announcement of 30% taxes on crypto gains and a 1% tax deduction at source will appear on all transactions from July 2022, striking the entire community adversely.
At that time, the local crypto leaders considered it a “period of pain” and said that technology always emerges as a winner despite the hardships.
Currently, the unfavorable market has led to a 21-month to four years of financial runway for these leading platforms. Each exchange is trying to rebrand, renegotiate, lay off, and suspend pay rise due to the market conditions.
The trading volume plummeted to seventy percent or more as soon as the tax imposition announcement on crypto trading came. This “brain drain” arose within ten days of the tax announcement. Further, the government levied a “shadow ban,” restricting local payment processors from undertaking money exchanges via bank.
Additionally, the crypto advocacy body was dispersed four months into the tax charges. The authorities started investigating more than ten crypto exchange platforms to assess their ties with foreign firms and money laundering charges using crypto.
The entire crypto world noticed this plight and even claimed that Indian tax policies would kill the crypto industry. According to some data, the nation’s crypto traffic continued to fall as Indians transferred higher than $3.8 billion in trading volume to international crypto exchanges.
As the president of Group of 20 (G-20) 2023, the Indian government has proposed framing “globally coordinated crypto sector rules.” By including the Indian crypto industry under anti-money laundering rules per global standard settings, the country can add some legitimacy to the sector.
This move has brought optimism in Indian exchanges regarding their life course. However, the tax regime and its impact are yet to be overpowered by stricter yet favorable crypto policies.
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