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India’s crypto tax pushing traders to foreign exchanges


India’s tax rules on crypto, which went into effect last April, has resulted in local exchanges ceding the lion’s share of the market to those operated by foreign players, according to a new report.
Binance, Coinbase and other foreign exchanges commanded 67.6% of the crypto market share in India as of October 2022, up from 50% in November 2021, according to New Delhi-based think tank Esya.
During the period between February 2022, when India unveiled its crypto taxation policy, and October 2022, $3.8 billion of trading volume shifted from domestic centralized exchanges to those operated offshore, the report said (PDF).
Indian exchanges including WazirX, CoinSwitch and CoinDCX lost a whopping 81% of their trading volume in four months between July and October, Esya said, attributing the trend to the local TDS rules.
India is among the nations that has taken a stringent approach at cryptocurrencies. It began taxing virtual curr …

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