A joint survey report by Crypto exchanges WazirX and ZebPay revealed that 83% of active cryptocurrency traders have deterred their trading frequency due to the recent tax implementation.
As per the news report, around 24% of respondents are contemplating shifting their trading activities to international exchanges owing to the high taxation. Further, 29% of the respondents traded lesser than the pre-tax period.
The reports are from the ‘Trader Sentiment Survey’. The report surveyed 9,500 active traders. 27% of the respondents sold over 50% of their portfolio before 1st April, whereas 57% sold under 10%. In the current scenario, revenue from tax collections for the government will decline as 27% of customers (34% traders and 23% holders) said they will trade less than earlier owing to the current taxation policy.
“It is our mission to put India at the forefront of the crypto revolution by constantly innovating and building the most secure, reliable, easy to use the platform and assist the industry in developing a regulated ecosystem. However, it is important that the regulations support the inclusive growth of all stakeholders involved. The survey results stipulate the need to reform certain conditions to aid the growth of crypto investors in the country which will result in economic prosperity. The tax regime needs to be balanced to encourage participation and revive trading volumes,” Rajagopal Menon, vice president, WazirX, said.
The report stated that 28% of the respondents aged 18 and 35 have sold more than 50% of their holdings before 1st April. 23% wished to move their holdings to an international exchange to avail a more favourable tax climate. This is in addition to the fact that 40% of the total affected traders have already sold more than 50% of their holdings before 1st April.
“Restrictive policies serve as a barrier to both adoption and innovation. While India’s crypto tax policy is a step forward, reconsidering certain aspects will help build a more supportive regulatory environment for all industry stakeholders and will ultimately contribute to overall economic progress,” Avinash Shekhar, CEO, ZebPay, said.