After the FIU announcement against the foreign crypto exchanges, trading volume on the local exchanges increased rapidly.
India is a very big center of crypto enthusiasts, but here no laws protect citizens from investing in cryptocurrencies, while all investors have to pay a 30% tax on every profit generated on every crypto transaction, while traders also have to pay 1% TDS (advanced tax) during every crypto sales transaction, which is a very important reason why investors stay away from local crypto exchanges.
Last week we reported that India’s Financial Intelligence Unit (FIU) has issued notices to eight crypto exchanges, including Binance, for non-compliance with India’s Anti-Money Laundering and Counter-Terrorism (AML-CFT) laws ).
However, the trouble notice against the crypto exchanges only ordered them to respond to the violation and there was no ban-like decision, but still the news acted as a catalyst to spread fear among the Indian crypto traders.
A large number of crypto traders have switched to local crypto exchanges registered with FIU-like government agencies to ensure that they do not allow illegal fund transactions through the crypto trading services.
Indian crypto exchange CoinDCX proudly announced a staggering 2,000% increase in crypto deposits since December 28.
This is very good news for all Indian crypto exchanges as before they were struggling to survive as low trading volume was a major problem for them to generate revenue.
Recently, Jayant Sinha, the Chairman of the Standing Committee on Finance in the Indian Parliament, shared his views on the regulatory framework for cryptocurrencies in an interview and predicted that it will take almost a year and a half for a new bill to regulate this sector.
According to Jayant, Indian regulators and policymakers will also take a huge amount of time to create new laws and regulations for this sector as they will ensure the perfect restraints against the bad actors while providing a better environment for this sector to develop.
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