CoinDCX: Cryptocurrency transaction tax causes 95% of India’s trading volume to go to overseas platforms

Indian crypto exchange CoinDCX said India’s digital asset transaction tax is counterproductive and should be reduced. Before India imposed a tax on cryptocurrency transactions, CoinDCX was valued at over $2 billion. Gupta said CoinDCX’s revenue is one-third of what it was before tax changes in India, and compliance costs have increased since India imposed anti-money laundering regulations on crypto businesses. At the beginning of 2023, the company laid off 12% of its employees and currently has about 550 employees. India started imposing a 1% TDS tax on cryptocurrency transactions 16 months ago, saying its purpose was to track buying and selling, not to raise revenue. But CoinDCX CEO Sumit Gupta believes that the tax has caused 95% of India’s trading volume to flow to overseas platforms, making it difficult for local officials to monitor these platforms. (Bloomberg)