Cryptocurrency and blockchain technology have never been able to stay grip of mainstream media ever since its inception. It remains in the news for one reason or the other which is why its prominence grew manifolds in the successive years. Having been the recipient of a lot of mixed emotions from investors, traders, government institutions, private investors, crypto exchanges, etc., The Bitcoin Prime platform had a rollercoaster ride all these years. The introduction of unprecedented benefits to the users and user-friendly features flocked millions towards the industry and the number doesn’t seem to die down anytime soon.
A massive surge in the number of transactions each month has drawn significant attention from the financial intermediaries & governance systems. Does that mean something favorable for the crypto industry or is it yet another red flag that it had to sail past? It will try to break it down in a comprehensive way to help you understand the latest developments in the crypto industry & crypto exchanges.
Crypto Exchanges Remain Unfazed
The government is trying everything in its power to prevent people from making strides in cryptocurrency because of high volatility & unpredictability in the digital financial market. Union Budget 2022 explicitly mentioned the rising taxes on cryptocurrencies. However, it didn’t seem to flinch the crypto exchanges in the slightest rather, the signups have only proliferated right after the announcement.
Little did the Finance Minister know that crypto exchanges in the likes of WazirX, Unocoin, CoinSwitch Kuber would witness more number of investors after her speech. The overall increase in the number of investors on such Crypto Exchanges has gone up as high as 35% to 39%.
Unprecedented growth post-Union Budget 2022
Prominent stakeholders in the crypto industry have already sent their petition to the incumbent government to reassess the matter of imposing heavy taxes on the transaction. All the excruciating tax slabs are bound to cripple the ability of stakeholders to remain afloat in the market. They have also asked the government to provide a little clarity as far as the TDS is concerned.
The daily signups on WazirX reached up to 59% of incredible growth, whereas Unocoin witnessed a similar surge in the signups that came to be about 50%. Moreover, the signups on CoinSwitch Kuber witnessed a splendid jump of 35%. It all ensued right after the announcement of the Union Budget 2022 that mentioned a 30% income tax regime on the transactions conducted in cryptocurrency.
Government’s nod to the revolutionary crypto ecosystem
The budget made it explicitly clear that the “Tax Deducted at Source” (TDS) will be 1% on all the cryptocurrency transactions and the income generated thereof. This also proved that India is finally gaining momentum around the crypto industry. The efforts to legitimize the industry were quite apparent in the latest announcement from the finance minister. The profound details are yet to be acquired from the government officials but the sign that the
The government of India has displayed to welcoming cryptocurrency is indeed worth something to look forward to. Unocoin is operating at all-time high signup with 3,000 prospective users being added to the platform on a daily basis. This number was 2,000 just a couple of months ago.
It is not just the “Budget Effect”!
The volume of transactions on such platforms has also registered a promising 15% to 20% high. The new tax regime that had been announced early this year will only be applicable from the 1st of April 2022. Hence, it is quite safe to say that the effects will undeniably be long-term. The prospects of customer education have also paved the way for crypto exchanges like CoinSwitch Kuber to witness a promising growth year-on-year.
Needless to say that the impact we are witnessing today is more than just a fad or wind. Attributing the surge just to the recent budget announcements will not be the ideal thing to do as crypto exchanges had been working extensively in the customer education space. The announcements only coincided with efforts that such exchanges had been making for the past few years after coming into existence.
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