Due to declining trading volumes and a slowdown in financial support, industry experts say crypto-currency exchanges in India are slowing down and their estimates are expected to yield significant results.
Crypto research company CREBACO Global said Business line As a result of declining trade, crypto exchange earnings are expected to fall in the next quarter, which will affect the value of these companies. “While many projects have not yet been launched, the second round of funding is being delayed,” said CEO and CREBACO founder Sidhart Sogani.
However, CEO of CapDeck Advisors, Business Consulting, said, “Evaluating crypto exchanges is really tiring but I believe this is a temporary flood. As CoinDCX likes, we still see a new round of high reviews and new Web3 projects being launched in India. It will regain its value because Indians are investing heavily in the crypto ecosystem.
Also, crypto exchange Unocoin believes that the declining trade and the breakdown will not hurt the currency. Sathvik Vishwanath, co-founder and CEO, said: “Volume reduction is having a significant impact on the exchange rate.
Drop in volumes
This growth comes at a time when leading crypto trading currencies such as WazirX, CoinDCX, BitBns and Zebpay have fallen sharply last month. Between April 1 and May 21, trading volume decreased by 82.92% on WazirX and CoinDCX by 41.28%, according to data shared by CREBACO Global.
The reduction in the amount of crypto exchanges appears to have been triggered by the new crypto tax laws, which came into force on April 1. Budget 2022 proposes a 30 percent tax return on sales of virtual digital assets. 1. Later, the government explained that crypto investors could not recoup the profits from one cryptocurrency to another.
In the same month, the payment app MobiKwik also stopped supporting wallet deposits on cryptocurrency exchanges, which affected the volume of transactions. MobiKwik was one of the most popular payment methods used in crypto exchanges. Transaction rates are expected to be lower when the 1 percent tax on TDS applies to all trades from June 1.
May 23, 2022