Binance attracts many users. A very popular cryptocurrency exchange, it currently has over 30 million users. It authorizes the trading of more than 150 cryptocurrencies in its ecosystem. Recently, Binance set itself a new goal: to become the haven for victims of tax oppression. And the Indians make up the first wave of refugees to have landed on the Hong Kong platform.
Considerable increase in Indian users on Binance
” The number of Indian users on #Binance skyrocketed after the Indian government started levying taxes on #crypto transactions. »
According to recent stats, Binance has been experiencing a heavy rush of Indian investors lately. According to bitcoin.comthey would not approve of the entry into force of a 1% tax, last July, withholding at source (TDS).
As a result, the Binance application was downloaded many times by Indians during the month of August, i.e. nearly 429,000 downloads. Although the numbers are not precise, the report highlighted a frantic race towards Binance this year.
At the same time, the appeal of local exchanges has declined. It is said that since July, the daily trading volumes on these platforms were decreasing by up to -90%. Such is the case of WazirX whose boss was recently singled out by Binance CEO CZ on Twitter. Hadn’t he invited WazirX users to transfer their funds to Binance on occasion?
However, the Indian government has not yet specified whether or not cryptocurrency transactions will be affected by this new tax system.
Explanations from Rohan Mistra, CEO of SEBA India:
” Recent tax regulations are not explicitly clear. It is important to know whether the 1% withholding tax extends to crypto-derivative transitions involving futures contracts, as it does for spot crypto transactions. »
What about the 1% TDS?
The tax deducted on source certificates obliges any Indian investor to pay 1% income tax. With each taxable payment made, the latter will have to remit the said tax to the Government of Central India on the basis of the prescribed rate.
In addition to the 1% TDS, there is also a new 30% tax that India intended to impose on crypto transactions at the beginning of May 2022. And even if this was revised to 28% by the Goods and Services Tax Council, the situation no longer motivates Indian crypto enthusiasts to trade in their country.
To further drive the point home, the local Fisc decided not to compensate the losses related to crypto trading by the income. In addition, Indian banks seem less cooperative with the exchanges on site. This complicates the transfer of assets inside and outside these platforms.
The situation reminds us of the effects of the repression of mining of bitcoins in China which made the happiness of other countries like the United States. The misfortune of some is the happiness of others, they say. Binance, which is content to observe the situation, has promised to comment on it soon. Otherwise, these massive departures of Indian investors have also favored foreign-based exchanges like FTX.
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