CoinDCX, which recently raised US$135 million and became the nation’s most valued cryptocurrency exchange, aims to increase compliance as India takes up the industry’s cause.
From April 1, all cryptocurrency income in India is subject to a flat 30 percent tax. In addition, starting on July 1, every transaction will be subject to a 1% tax deducted at source (TDS). The Indian government has also made it clear that gains from one cryptocurrency cannot be used to offset losses from another.
These new tax laws have scared investors to friendlier regions.
According to CoinDCX’s Sumit Gupta, “I don’t think it’s a question of ‘if’ but ‘when’ India would regulate cryptocurrency.” The founders of the cryptocurrency trading platform, which was last valued at US$2.15 billion, told Forkast that exchanges would keep working to advance the industry until that time. “The level of understanding within the government has significantly improved, ”
Plans for the Future:
CoinDCX intends to use a portion of its most recent fundraising to hire individuals.
According to Gupta, the first bitcoin unicorn in India intends to increase its staff by three times by the end of the year from its current 400. We will keep expanding our product engineering staff since, according to him, there are several things that we want to create for the nation.
The industry is being scrutinized in its home country of India, hence CoinDCX‘s focus on compliance.
Lawmakers in the nation who may be able to influence rules still see it as a speculative activity that is bad for society. A lawmaker from the ruling party told Forkast that India has to deter individuals from investing in cryptocurrencies and other digital assets.
Reducing the trading values:
And if that weren’t enough, a dramatic decline in trade volumes has been brought on by India‘s levy on cryptocurrency trading that went into effect on April 1. According to Gupta, CoinDCX saw an overall volume decline of between 30 and 35 percent daily this month compared to the previous.
Gupta explained the situation, saying that although the decline in prices was significantly greater in India, it had resulted in comparable declines in trading volumes everywhere else.
High-volume day traders are also being deterred, according to Gupta, by India’s plans to start charging a 1% factory-gates charge in July.
Without going into further detail, the email statement stated that CoinDCX was also concentrating on enhancing its know-your-customer standards as well as risk and compliance management for cryptocurrency deposits and withdrawals. (1)
What helps, according to Gupta, is that investors recognize that these are only short-term setbacks for a sector still in its infancy and will eventually prosper in India.
Despite the recent sensation over India’s apathy toward cryptocurrencies, Gupta remains optimistic.