Trading volumes at crypto exchange WazirX rose about 35% to US$7.18 million on July 20, from US$5.30 million on July 1, according to data from crypto index tracker nomics.com, as Bitcoin prices rallied to briefly cross the US$24,000 mark on Wednesday.
Another Indian crypto exchange, CoinDCX, saw a roughly 63% increase in volumes to US$3.37 million on July 20, up from US$2.07 million on July 1, data showed.
Volumes on Indian exchanges had dropped more than 60% after a 1% tax-deducted-at-source (TDS) kicked in from July 1 on the sale and transfer of crypto assets above 10,000 Indian rupees (US$125).
Trading volumes had slumped to their lowest in years after a 30% flat tax kicked in on April 1, according to research by Crebaco.
However, The Indian government won’t reduce taxes on cryptocurrency transactions, a minister said, despite repeated pleas by the industry
India introduced a 30% flat tax on all crypto income from April 1 and a 1% tax deducted at source (TDS) on transactions above 10,000 Indian rupees (US$125) from July 1. India also does not allow cryptocurrency traders to offset losses with gains made elsewhere.
Responding to another query, Chaudhary pointed out that the Reserve Bank of India has started working on introducing its central bank digital currency (CBDC) in a phased manner, according to the media report.