In a landscape where India’s crypto industry has been under scrutiny, WazirX’s CEO, Nischal Shetty, suggests that relief might be a distant dream, possibly two years away.
What Happened? Last year, the Indian government introduced a 1% tax on crypto transactions, known as TDS. This move saw a dramatic plunge in trading volumes, with some exchanges reporting a staggering 97% drop within ten months.
According to a Bloomberg report, while India advocates for a globally coordinated crypto regulatory approach, regions like Hong Kong, Dubai, and the European Union have already established their frameworks. These regions are attracting digital-asset companies, especially those looking for alternatives to the US’s stringent regulations. Shetty remains optimistic about India’s potential shift towards a more crypto-friendly policy, although specifics remain undisclosed.
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A certain death? The TDS imposition has led many Indian investors to pivot to overseas crypto platforms. CoinDCX, a local competitor to WazirX, reported that Indian platforms lost over 2 million users from February to December last year. In contrast, international platforms gained over 1.5 million Indian customers.
Despite the challenges, India’s reputation as a tech and software hub remains intact. Global giants like Coinbase continue to maintain significant operations in the country. Meanwhile, the Reserve Bank of India is making strides with its digital rupee, already been adopted by over 1.3 million customers.
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