Following the FIU notice against the foreign crypto exchanges, the trade volume on the local exchanges surged rapidly.
India is a very big hub of crypto lovers but here no laws protect citizens from investing in cryptocurrencies, while all investors are required to pay a 30% tax against every profit generated on each crypto transaction as well traders are required to pay 1% TDS (advanced tax) during each crypto sell trade, which is a very big reason why the investors remain away from local crypto exchanges.
Last week we reported that India’s Financial Intelligence Unit (FIU) sent notice to 8 crypto exchanges, including Binance, for non-compliance with India’s Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT) laws.
However, the issues notice against the crypto exchanges ordered them to only respond to the violation and there was nothing ban- like decision but still the news acted as a catalyst to create fear among the Indian crypto traders.
A huge number of crypto traders shifted to local crypto exchanges which are registered with FIU-like government agencies to make sure that they don’t allow any illegal fund transactions via the crypto trade services.
Indian crypto exchange CoinDCX proudly declared a staggering 2000% surge in crypto deposits since December 28.
Now this is very good news for all the Indian crypto exchanges because before this they were struggling to survive, as low trading volume was a big problem for them to generate revenue.
Recently in an interview Jayant Sinha, the Chairman of the Standing Committee on Finance in India’s Parliament, shared his opinion on the crypto regulatory framework and predicted that it will take nearly one & half years to see any new bill for the regulation of this sector.
According to Jayant, the Indian regulators & policymakers will also take a huge time to create new laws & rules for this sector because they will ensure the perfect restrictions against the bad actors & simultaneously provide a better environment for this sector to evolve.
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