Binance tightens its grip on the Indian market as app downloads surpass DailyCoin’s past records
© Reuters. Binance tightens its grip on the Indian market as app downloads surpass all-time highs
Binance CEO Changpeng Zhao Tightens His Grip On India’s Cryptocurrency Trading Market As Major Tax Change Goes Into Force Forcing Indian Investors To Pay 1% TDS On Crypto Trades, Implemented in July 2022.
Lately, Indian crypto traders have opted for investments in foreign markets instead of investing in Indian crypto exchanges. Bloomberg reported that Binance app downloads in India jumped to 429,000 in August, the highest this year.
Binance is among the top exchanges that saw higher downloads in India because while many Indian-based platforms have started deducting the tax, other foreign competitors such as Binance and FTX Trading Ltd have not. not done, prompting many to switch to their platforms.
According to the report, daily volumes on major India-based platforms have fallen by more than 90% since a 1% tax on crypto transactions took effect in July.
Rohan Misra, CEO of SEBA India, a subsidiary of Switzerland-based SEBA Bank AG, told Bloomberg that “recent tax regulations are not explicitly clear as to whether the 1% withholding tax s extends to crypto derivatives transactions involving futures contracts, as it does to crypto spot transactions.
Thus, traders see a loophole in the application of taxes.
Why are traders switching to Binance?
Data from market intelligence firm Sensor Tower shows that Binance, operator of the world’s largest crypto exchange, stands out in the market, while runner-up CoinDCX struggles to catch up.
CoinDCX downloads, for example, fell to 163,000 in August from 2.2 million in January, according to data from Sensor Tower.
Binance is also known for offering low fees, varied offerings, and a popular peer-to-peer marketplace that allows for easier movement between tokens and cash.
Recently, Binance also encouraged WazirX customers to switch to Binance. The announcement was made by Zhao personally on Twitter (NYSE:) after a spat between him and WazirX co-founder Nischal Shetty over Binance’s rights to WazirX. WazirX’s monthly downloads dropped to 92,000 in August from around 596,000 in January.
on the reverse
- Binance’s advantage in India, like other foreign exchanges, could be lost if the government decides to fix the loophole of charging 1% TDS on Indian exchanges.
Why You Should Care
The 1% tax charge on crypto transactions came on top of a new 30% tax on gains from the transfer of crypto assets. The Indian government seems to be getting stricter with the regulations regarding crypto transactions, as some of the new rules introduced this year include a ban on offsetting crypto trading losses against revenue.
Learn more about the Indian crypto market:
Over 115 million Indians have invested in cryptocurrencies, KuCoin survey finds
India’s new crypto tax reduces trading volume by 63% in just four days
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