Crypto Tax Fallout? Mobikwik Halts Crypto Transactions Services

As traders consider the 30 percent crypto tax, cryptocurrency trading volumes in India have plummeted even lower across exchanges. Mobikwik, a major payment service provider, has also ceased serving exchanges. 

The Volume Of Crypto Trading In India On A Downward Spiral: 

The government of India began taxing cryptocurrency profits at 30% without allowing any loss offsets or deductions, and the trade volume has continued to decline. 

Cryptocurrency trade volumes have decreased from the previous week across all major exchanges, according to crypto research firm Crebaco. Wazirx’s trading volume fell by 72 percent, Coindcx’s by 52 percent, and Zebpay’s by 59 percent. 

MobiKwik, however, apparently stopped operating across exchanges on April 1 due to ambiguous restrictions. It was one of the most popular payment methods for buying bitcoins on exchanges. 

As per the magazine, a crypto exchange official said: “Mobikwik did not specify why it was discontinuing its services. They recently informed us that they will no longer be collaborating with exchanges.” 

Coinbase, a Nasdaq-listed crypto exchange, revealed last week that it had fully opened in India and that customers could utilize the Unified Payments Interface (UPI) system to transfer payments and acquire bitcoin. The National Payments Corporation of India (NCPI), which invented UPI, replied by claiming that no cryptocurrency exchanges use the system. 

Another unfavourable tax will take effect on July 1. A 1% tax on cryptocurrency transactions will be deducted at the point of sale (TDS). A member of the Indian parliament recently highlighted why the crypto business would be affected badly by this tax. 

Meanwhile, the Indian government is still developing a crypto framework. Officials from the Finance Ministry are said to be talking with foreign institutions such as the IMF and the World Bank, as well as the Reserve Bank of India (RBI) and other domestic authorities. 

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