Binance, the world’s largest crypto exchange by trading volume, said on Friday it does not own the Indian platform WazirX despite announcing the acquisition two-and-a-half years ago, a move that has baffled industry players, including an Indian firm that insists on buying happened.
Changpeng Zhao, Binance’s founder and chief executive, said in a series of tweets that the company had been “trying to close the deal for the past few years” but had yet to complete the transaction, citing “several issues,” which he declined to elaborate on.
Binance announced the acquisition of WazirX in late 2019 in a blog post. The official blog post, which included a picture of founders Zhao and WazirX, also featured the Binance executive’s excitement about the deal.
These arguments have come to light following ED’s attempt to get clarification on possible money laundering activity using WazirX exchange.
Given this background, some of our customers have written tickets to us asking how is Unocoin operating etc. Hence, we at Unocoin would like to take the opportunity to give some clarifications:
Be smart! Trust Unocoin – the safest crypto exchange in India.
Structure:
Unocoin Technologies Pvt Ltd is a company registered under RoC in Bangalore, India. It is a wholly owned subsidiary of Unocoin Technologies Pte Ltd registered in Singapore. Both are tightly held companies, with full and active reporting, and without any loose ends or confusion.
Security and justice
Unocoin implements the latest security measures for its exchange to ensure the highest level of security for its users’ information and their funds. The majority of all bitcoins stored on the exchange are securely stored in offline wallets with cold storage. This prevents the majority of the coins from being vulnerable to hacks. The exchange’s servers are secured using the latest encryption technology, and users can further secure their accounts by using Google’s two-factor authentication to access their accounts and make transactions.
Support
Customer support service is quite extensive at Unocoin. It not only offers email support through a support ticket system, but it also takes up the responsibility to answer any queries through Google play store reviews, app store reviews, twitter, facebook, linkein, reditt etc. This system is very well organized and allows users to easily identify and explain their problems. Some users may have experienced a slow response during the very high usage and popularity of Bitcoin trading and this is seasonal. We do our best to serve our customers to the fullest extent possible and as fast as possible.
Conclusion:
Unocoin provides an excellent service to buy and sell bitcoin and other cryptos easily. The Brokerage and Exchange are clearly designed for novice traders and mass adoption due to their intuitive design and simplicity and the first helping hand would be the tutorial videos available in 16+ Indian languages before someone need to contact our customer care. Unocoin takes pride in being transparent and following all the rules and regulations as the part of law of the land. We have had hundreds of enquiries so far from various investigation departments, tax authorities, enforcement authorities both national and internationally and every queries have been answered to the fulled extent as anticipated by the authorities. Crypto industry in India is self regulating to some extent. Our KYC and money laundering norms are quite strict than other crypto companies so that we can avoid bad actors and support the crypto adoption in India for decades to come.
Please find the list of authentic Unocoin accounts for all your queries below:
Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
The current Bitcoin decline is more of a correction phase than a downturn. So should you buy the dip? A dip is a brief decline in crypto asset values, especially when a particular coin or token is anticipated to appreciate soon. A dip could be brought on by several things, such as unfavorable market circumstances, news, government intervention, or even manipulation.
If you’re confused about “should I buy the dip?” you should know that it works best when actively trading rather than keeping a position for a longer duration. Some of the most important reasons you should buy the dip are that the price of crypto assets in the market is still at an all-time high. Some of the top fintech platforms support it; thus, you can gain a lot by investing in a dip.
To do this, you can use dynamic dip coin trading platforms. They give you easy access to the many crypto assets on the market and allow you to trade (buy and sell) them while you’re on the go.
The best coin trading platforms in a dip that you MUST know!
Best Crypto asset trading platforms
The top crypto asset trade platforms are listed below:
Unocoin is a mobile wallet that enables users to buy, sell, store, use, and accept bitcoins. Users can print paper wallets and import bitcoin addresses to their own address book and also withdraw bitcoins to their paper wallets. Available on both iOS and Android platforms, it acts as a point-of-sale merchant mobile app. Unocoin was launched in 2013 and is based in Tumakuru, India.
Crypto.com is a cryptocurrency exchange company situated in Singapore with a whopping fifty million customers and four thousand employees. Bobby Bao, Gary Or, Kris Marszalek and Rafael Melo founded this company in 2016.
Crypto.com has signed sponsorship deals with car racing championships, various sports personalities and the charity organization Water.org. Actor Matt Damon as the brand ambassador was included in the signing of Water.org partnership.
Foris DAX Asia, another company based in Singapore, operates Crypto.com.
Pionex is a centralized cryptocurrency exchange that offers thirteen types of crypto trading bits in the bounds of this exchange. It’s a Singapore-based company. It collects its liquidity from Huobi Global and Binance so that its users can enjoy a comfortable trading experience with flawless liquidity.
On both, making and taker orders, Pionex charges a flat of 0.05% fees.
Pionex attains a USA Money Services Business License (MSB) with a pending Monetary Authority of Singapore (MAS) license. It’s backed by BitUniverse and also, Zhenfund and Gaorong Capital (Well-reputed Chinese Venture Capital Firms) have invested in Pionex.
Colonnade is an American Publicly traded company operating a cryptocurrency platform.
Brian Armstrong and Fred Ehrsam founded Coinbase in 2012. Since it is a distributed company, all employees work via remote work, which also implies that Coinbase is yet to acquire physical headquarters.
By trading volume, Coinbase stands first as the largest cryptocurrency exchange in the US.
Changpeng Zhao founded Binance in 2017, registered now in the Cayman Islands. It is the largest cryptocurrency exchange in the world in terms of the regular trading volume of cryptocurrency.
It is served all around the globe, except the US. Binance was forced under investigation by the United States Department of Justice and Internal Revenue Service on accusations of money laundering along with tax offenses. Later on in 2021, Binance had to cease all of its regulated act on it in the United Kingdom under the UK’s Financial Conduct Authority order.
Kraken is both, a cryptocurrency exchange along with a bank. It is located in San Francisco, California, United States, founded in the year 2011. It offers trading between cryptocurrency and fiat currencies, and also provides price data to Bloomberg Terminal.
The Owner and CEO of Kraken are Payward and Jesse Powell, respectively.
Nejc Kodrič (Board Member) and Damian Merlak co-founded Bitcoin. It is a cryptocurrency exchange company situated in Luxembourg (London) and Slovenia (New York City), allowing trading between fiat currency, bitcoin and other cryptocurrencies.
Bitcoin offers API to enable clients to utilize custom software to access and control their accounts.
Bybit’s Smart Trading System enables to take up profit & eliminate loss at entry, notify strategy alerts and adjust orders with just one click. It offers the top-class market depth, with each trade to be executed with minimal price at impact.
The leading HD cold Waller system assures the safety of the user’s funds.
The Bottom Line
A trading chance is only as good as the amount of money you’re willing to put into it. Crypto asset dips are common, but not all will bounce back. Extensive research is one of the finest methods to utilize. You’ll almost always discover that information is worth more than a little discount on a deal, and with the necessary information, you can decide should you buy the dip?
Please find the list of authentic Unocoin accounts for all your queries below:
Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
The “Death of Bitcoin” has taken over the internet and left investors in a grave dilemma. Check out this insightful article to delve into the details and back your opinion.
Is Bitcoin Dead?
Bitcoin has been one of the most popular crypto assets since it was launched, gathering the interest of millions of investors around the globe. Despite its vast popularity, bitcoin has also been alleged to have died 461 times since its inception, with the most ‘deaths’ occurring in 2017.
2017 was also a year in which many investors began to purchase crypto assets owing to FOMO (Fear Of Missing Out). Bitcoin has “died” 21 times since the start of 2022, accompanied by a steep price decline. Even though it is a relatively new asset and that cryptographic technology is still in its early stages of development, it is safe to assume that it will be around for the foreseeable future.
Bitcoin As A Digital Currency
Bitcoin has improved and reached out to become the digital currency with the most significant global recognition. The popularity of this digital currency has spawned a vast array of other digital currencies. These competitors intend to either replace it as a payment mechanism or incorporate it as a utility or security token in other blockchains and financial technologies. Alternatively, they attempt to replace it with their payment system.
The Eventual Decline Of Bitcoin
The price of bitcoin has been slowly declining over the past few months. Since reaching an all-time high of Rs 54,99,457.17 on 10 November 2021, the price has dropped by ~69 per cent to its current Rs 16,61,132.80.
There has been an increase in the search for the phrase “bitcoin is dead.” The rate of internet searches for “bitcoin dead” peaked in June 2022 after the price of one bitcoin dropped below the Rs 14,16,319.09 threshold.
The Graph Of Bitcoin
Bitcoin’s MVRV (MVRV = Market Cap / Realised Cap) score has decreased twice over the past four years. The first was in 2018, and the second was in March 2020. If this trend continues, the bitcoin price may undergo a momentary fall, but it should soon resume its upward path.
Analysts have found several past support levels at which bitcoin may be able to stabilise, even if prices continue to decline. In December 2020, bitcoin achieved a support level of Rs 17,35,575, after which the crypto asset rose to Rs 32,49,250. Suppose bitcoin were to dip below Rs ~15,00,000 again, as it has in recent weeks. In that case, bitcoin’s historical performance indicates that Rs 14,16,353.07 would be further support levels for a new surge for this quarter.
There are numerous grounds to believe that bitcoin’s use around the globe is not yet done. In addition, if these on-chain metrics consider bitcoin’s future performance, an upward trend should be anticipated.
Why Is Bitcoin’s Value Consistently Declining?
There have been other instances in which bitcoin’s value has climbed, giving investors hope that they may be able to recoup their losses. In reality, bitcoin’s price jumped after Vice President Joe Biden’s administration issued executive orders mandating the development of a framework to handle digital assets.
Recent reports indicate that the government is also considering the tremendous opportunities that significant crypto assets like bitcoin bring. This step was applauded by those who believe they may benefit from the enhanced regulatory conditions.
In addition, the system that was implemented to limit inflation had a negative impact on the price of BTC. When a policy shift occurs, high-risk assets often see a considerable decline in value. However, these impacts always seem to be temporary.
Similar factors contributed to the depreciation of the value of bitcoin, causing investors to experience panic. Analysts have forecasted that BTC investors should also be prepared for the prices of all digital assets, including bitcoin, to vary similarly to traditional investments, excluding future governmental actions and market sentiment.
This consists of the cost of conventional assets. It is feasible for lesser-known crypto assets to move with or without the correlation of traditional assets. However, significant crypto assets such as bitcoin and ether will quickly co-relate with conventional assets.
Is Bitcoin Expected To Rise In The Future?
Consumer interest in crypto assets has increased despite the market drop, with many surveyed intending to purchase or utilise digital assets in the future. Based on responses to a survey, the report was compiled. Ninety-one per cent of respondents planned to buy crypto assets within the next six months, according to a study of 1,000 crypto asset users and potential users.
In addition, the same number of respondents reported having acquired crypto assets within the prior six months. 30% of respondents indicated they had no intention of selling any of their crypto-asset holdings in the following months. The exact number said they had not sold any digital currencies in the previous six months.
The survey shows people’s enthusiasm for adopting digital currencies as payment has increased. Nearly 49% of respondents said they presently use crypto assets as a payment method for online purchases, and 34% said they had used crypto assets for in-person transactions.
Seventy-seven per cent of respondents claimed to have held digital holdings for less than a year, demonstrating that most respondents were short-term investors in crypto assets.
Will Bitcoin’s Price Continue To Rise?
Regarding financial investing, there are no certainties. There is always a probability that the price of bitcoin may recover as quickly as it declines.
The prospects of crypto assets are limited by some crypto asset-related concerns, such as:
coercive tactics adopted by countries such as China
Globally, there have been various calls for stricter regulation.
Environmental concerns
Problematic security and unauthorised access
Their value is established solely by market speculation.
The valuation of digital currencies is affected by the idea that greater regulation threatens the decentralisation of crypto assets.
Bitcoin’s advocates highlight its positive qualities:
Specific industries have the potential to be utterly transformed by technological innovation.
When “middlemen” such as banks are eliminated, transactions become more straightforward and less expensive.
Using non-fiat digital money would eliminate the need to worry about shifting exchange rates, thereby streamlining international trade.
Transactions are more confidential.
Because it cannot be printed or removed, it is a highly reliable method of storing value.
Bitcoin has been marketed as a potential substitute for gold, which means it can operate as a price stabiliser.
Due to its extreme volatility, there is a possibility that bitcoin will once again begin gaining momentum in the future (perhaps weeks, months, or even years down the line).
However, the speculative nature of bitcoin makes accurate forecasts about its future difficult.
The Reason Behind The Fluctuating Value Of The Bitcoin
These reasons led to the recent decline in global stock prices:
The war in Ukraine
Fears over inflation
Interest rates will increase the cost of taking on debt to finance business activities.
Consequently, the market for crypto assets has been affected.
The continued repression of bitcoin activities in China is a factor. In addition, rumours have circulated in Jan 2022 that Russia may prohibit all crypto asset-related activity.
Bottom Line
Bitcoin has been declining due to a variety of reasons. Besides its downfall, there is still a fair possibility of bitcoin improving its value in the future. You can explore Unocoin now to know more about Bitcoin and other crypto-assets.
Please find the list of authentic Unocoin accounts for all your queries below:
Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
Market downfall is nothing new for an investor, but thorough research around top crypto assets, precautions, and clever tactic is the way to handle a bearish situation.
Top crypto to explore in a bear market
Traders and investors frequently have to choose which token to invest in when the market is bearish. Good market research skills are one of the traits of a successful trader. In addition to receiving financial guidance, traders and investors should only put in the money they can afford to lose. Since crypto assets have shown high volatility over time, one should not put their entire life savings into them. Even though the market for crypto assets has been adverse for a while, some are still profitable for select traders and investors.
Since the mid of May 2022, when the market cap of all crypto assets fell to 1,137 billion USD from a high of 2,192 billion USD on 4 April, the price of crypto-asset has been in a bear market. Compared to this already low level, the market fell another ~58 per cent from 5 May 2022’s 1,805 billion USD to 9 July’s 756 billion USD. It has stayed roughly in the same place ever since.
Indeed, the crypto assets market is currently in a bear phase. Market-wide reductions, however, mask several intricacies and outliers, with certain crypto assets enduring or outperforming most.
We will summarise these in this blog while also looking at which crypto-assets do the best in a bear market. And while some of the items on this list may come as no surprise, others might.
Bitcoin (BTC)
It’s a sure bet that BTC’s adoption will grow. This indicates that bitcoin will keep its value higher than most other crypto-assets. It might even experience gains as traders pull out of more highly speculative altcoins.
The price of bitcoin has been constant for the previous month and has dropped by 55% since hitting an all-time high of $69,044 in November 2021. Here are the equivalent movements for a few more significant coins, in contrast:
Ethereum has dropped 62% since its all-time high in November and by 20% during the past month.
Cardano has increased by 5% over the previous month but has decreased by 79% since September ATH.
Solana has decreased by 84% since November ATH and 35% over the past month.
Dogecoin has dropped 89 % since its all-time high in May 2021 and 23% during the past month.
The 55% decline since November isn’t fantastic, but bitcoin has stabilised in recent weeks compared to other major coins. It indicates that BTC is still the “safest” option if you wish to store your money in crypto assets.
Most crucially, a new bull market won’t start without BTC first soaring, just like it did during the bull runs of 2017 and 2020–21. Thus, it is currently the most acceptable choice.
2. Ethereum and other Altcoins
Even though we’ve only recently contrasted Ethereum adversely with Bitcoin, it’s worthwhile to suggest it as a crypto asset to buy during a bear market. That’s because the economic crisis has caused it to be excessively undervalued compared to its potential.
First, Ethereum remains the most widely used asset on a blockchain platform, accounting for 64.65% of the entire decentralised finance (DeFi) market, with a total value of $69.58 billion. It has increased from 54% in April, the same as how BTC has grown in popularity, indicating that as the economy has become less certain, users have turned back to Ethereum.
Second, Ethereum’s switch to a proof-of-stake consensus mechanism is a significant development. It finished its testnet merge, clearing the path for the actual merge. As the tentative date for Ethereum Merge gets finalised, the price of Ethereum (ETH) has jumped over 50 per cent in the last seven days. As a result, Ethereum will become more scalable and energy-efficient, increasing the demand for ETH.
The same logic holds for other altcoins with solid fundamentals. It covers crypto assets like Cardano, XRP, Avalanche, Polygon, Polkadot, and others growing steadily due to the general market and macroeconomic situations.
As a result, they are significantly undervalued, which positions them for a potential steep climb once the bear market ends, and the bull market resumes.
3. Binance Coin and Exchange Tokens
Regarding relativity, another token that has declined noticeably less than other significant crypto-assets is the Binance coin (BNB). It has fallen by 3% over the previous month and by 57% from an all-time high of $686 established in May 2021.
BNB price is still sustained. It continues to be used even during a down market because it is a utility token that offers Binance customers discounts on trades. In other words, there is still some fundamental need for it, and investors might place greater trust in it because of its connection to the most significant exchange.
4. Stablecoins
There’s no denying that most stablecoins have, on average, held their value more than non-stablecoin crypto assets. These need to highlight among the crypto assets that perform best during a bear market.
Stablecoins like USD Coin (USDC), Dai (DAI), Binance USD (BUSD), Tether (USDT), and the Pax Dollar (USDP) are still 1:1 tied to the US dollar, which means that they have gained or lost 0% during the current bear market. Stablecoins are the best of a fragile lot. However, most traders prefer investments that increase in value (rather than stay the same).
Analytics of top 10 current crypto asset prices
Despite the harsh crypto crash situations, crypto asset prices are increasing, and the market is sending investors bullish signals. Bitcoin, Ethereum, and many other crypto assets are experiencing significant growth. Therefore, before making a wise investment choice in crypto wallets, crypto-asset investors must keep an eye on the most recent crypto assets values.
The top 10 crypto asset prices are listed as per the Analytics of 08th July 2022
Bitcoin (BTC) – 22,038.71 USD (up by 8.07 %)
Ethereum (ETH) – $1,254.41 (up by 7.17 %)
Tether (USDT) – $0.9995 (up by 0.03 %)
US Dollar Coin (USDC) – $1.00 (up by 0.00 %)
Binance Coin (BNB) $ 0.243.48 USD for (up by 3.07 %)
Binance USD (BUSD) – US$0.9993 (down by 0.07 %)
XRP (XRP) – US$0.3541 for (up by 7.39 %)
Cardano (ADA) – USD $0.4832 (up by 3.82 %)
Solana (SOL) – 38.37 USD (up by 4.18 %)
Dogecoin (DOGE) – US$0.07171 (up by 4.78 %)
The total value of all crypto assets is US$972.80 billion, up 15.49 per cent in the last 24 hours on a volume of US$64.64 billion as per the analysis.
Diversify your investments across different crypto assets
Similar to how it’s practically impossible to anticipate when a lousy market will end, it’s hard to predict which of the 20,000+ crypto assets will recover quickly or see the most significant rise.
Using Unocoin’s Crypto Basket for various crypto assets is one approach to diversifying your chances. This way, you’ll lower your overall risk.
Of course, investing in a few crypto assets isn’t enough. Before purchasing any crypto assets, you should conduct thorough due diligence and check for the following:
Peak: No cryptocurrency is guaranteed to reach its previous all-time high, but looking at it can give you an idea of the asset’s potential.
Performance in the past: Check the asset’s price history using an exchange like Unocoin to see how well it has recovered from crashes in the past. Does it consistently outperform other top assets, or does it strongly correlate with the rest of the market? Although past performance does not predict future price activity, it does offer you a general indication of what is likely.
Upcoming roadmap announcements: Introducing a significant update or roadmap development can help an asset’s recovery. These can involve rebranding, the introduction of the mainnet, or a new relationship.
Crypto and global impact
Another industry where enormous game-changing changes are potential is global remittance. In an integrated environment, consumers can easily send money overseas at a reduced cost, with faster settlement and shorter processing periods.
Although the crypto-assets market is highly unpredictable, experts think a disciplined investment plan can produce good long-term returns. Because crypto-assets investments are long-term, investors do not need to worry about market timing.
Diversifying your crypto holdings and making SIP investments should be your guiding principles to reduce risk. Investors should avoid leveraged trading, high-frequency trading and illiquid crypto assets while diversifying their portfolios.
Summing it up
To protect their capital from market volatility and instability, investors should have specific, time-bound investment goals and avoid letting FOMO (fear of missing out) dictate their approach. Investors in the crypto-asset market should educate themselves, conduct due diligence, and always use caution.
Recognising fear and greed are potent motivators that result in losing transactions is a crucial first step before placing a trade. A clear strategy might mean the difference between generating a profit and losing money. Another seemingly simple but challenging skill to learn is taking profits.
Greed will frequently hold your emotions making it hard to take profit in the hope that the asset will increase in value further. This raises your danger of losing money on the deal, especially if you don’t use stop losses. Take profits, make sure you have money aside in case of crashes, and preserve your composure as the bearish season approaches. Become part of Unocoin to get more insights into the crypto future.
Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
Three months after the 30% tax implication on the crypto gains, the government imposed an additional 1% TDS on all crypto exchanges in India, giving investors another major setback.
After the imposition of a 30% tax in India on all crypto asset gains, the government also announced 1% TDS on crypto assets’ transfer in India. How has this affected the crypto market? Down the line, will it facilitate or hinder the domestic crypto exchanges and the traders dealing with crypto assets?
The government believes it to be a step towards enhancing clarity in the financial field by tracing transactions and preventing tax evasion. However, some traders consider it a controversial provision that could affect how they work with their crypto assets.
Continue reading to know how the TDC implications will affect the Indian crypto market.
Indian crypto market after TDS implications
A Significant Move By The Indian Government
Earlier in 2022-23, during the budget speech, the finance minister of India, Smt. Nirmala Sitharaman announced that all the gains and income from the crypto-assets would be liable to 30% tax in India. This move came as a way to regulate the market and keep a check on the transactions to ensure that dealing in crypto always remains legitimate.
The government further imposed yet another tax on crypto traders. Tax Deducted at Source (TDS) valuing 1% of the total transfer of crypto-assets. TDS is an advanced tax applied when crypto transfers happen, and this will be applied to both parties in the case of crypto-to-crypto swaps based on the fair market value.
The industry is still seeking clarity from the government on the trading and swaps of crypto and other virtual digital assets.
In this regard, the Co-founder and CEO of Unocoin, Mr Sathvik Vishwanath, said that TDS applied to the sale of crypto assets in India will become a part of the comprehensive income tax filing and will not be identified as a separate tax.
This move relieved many, hinting that crypto might not be banned in India. But the crypto assets entered the bear market territory, and the major collapse of the Terra stablecoin worsened the crash, strong-arming the government to take some immediate measures to tackle the uncertainties surrounding crypto-assets and their fate in India.
Who Has / Will Face The TDS Deductions?
If you are still unclear about who will fall into the TDS bracket and what transfers attract TDS, do not worry. In multiple cases, different parties will be liable to pay the taxes. Some of which are mentioned below –
Transferring crypto via exchanges: In this case, the TDS will be deducted from the exchange which is making payment to the seller.
Transferring crypto through a broker on an exchange: If the broker is not the seller, but a facilitator for the exchange, the broker will be liable to pay the TDS for crypto assets in India.
Transfer of crypto through the exchange in a peer-to-peer way: In such a case, the buyer will have to pay the TDS.
Transfer of crypto for another crypto asset: In this case, both parties involved in the transaction are both buyers and sellers. Thus, both will have to pay the TDS along with the evidence of the exchange of their VDAs.
The TDS for crypto assets in India does not apply to the buy-transaction but only to selling the VDAs. If the tax has been deducted, the payment gateways cannot deduct the tax again. In contrast, the payment is being made through a payment gateway. Also, this tax will be applied only when the total value of the transfer of VDA is more than INR 10,000 in a single financial year by one person and INR 50,000 for specified persons.
The Current Scenario
The new policy of TDS for crypto assets in India has launched on 01 July 2022. With its coming into effect, Bitcoin, the oldest and the most prominent cryptocurrency, is trading at the lowest it has been in the previous 18 months. It fell around 70% from the value it held in November 2021. The total capitalization of the crypto market today has reached USD 1,009 B.
In the global scenario, the trading volumes have experienced a major hit due to one of the reasons being regulatory and taxation confusion in India.
Impact Of The TDS Implication On Crypto Assets In India
The basic and the most crucial impact of the TDS implication for crypto assets in India is that on every trade conducted by the investors, they will have to lose 1% of their transfers to the government to be claimed after filing their income tax. It will affect the day traders and the short-term investors majorly. The number of trades is too high to comply with 1% TDS on each one of them.
It has and continues to lead to the discouragement of active day trading and reduced amounts of trade volumes. Key players in the crypto industry believe that this will have not short-term impacts but implications in the long run. Combined with the tax of 30% imposed on the crypto gains, this TDS for crypto assets in India will *de-motivate* people to invest in the crypto, leading the Indian Crypto market to fall back.
The 1% TDS for crypto assets in India applied by the government could scare off the investors and traders and might result in fall liquidity for all pairs. All the three stakeholders of the crypto industry- the users, the crypto platforms, and the industry as a whole will face detrimental losses because of this tax.
The capital that the users used for trading will be locked due to no liquidity, affecting the users. This kind of complication might lead for crypto investors to either halt their trading and move to some other asset class or look for global options which might complicate this more than it has to be.
The TDS applied on the crypto gains in India is higher than the taxes applied on short-term and long-term capital gains, including the equity share, mutual funds, bonds, etc. The traders believe that the government is not fair regarding taxation.
The demands continue to rise for the application of 0.01% or 0.05% taxation, as this will also reduce the liability towards the government and bring transparency to the crypto exchanges without affecting the industry adversely.
Final Word
With the Indian government continuously giving significant setbacks to the crypto industry in India by crypto taxation, people are shifting their focus to trading outside the country. It is impacting the overall revenue expectations that the government aspires to claim and collect from the crypto traders in the country.
To resolve this issue regarding TDS for crypto assets in India, the government should consider the opinion of the key players in the industry so that all the stakeholders can benefit from the government policies.
Please find the list of authentic Unocoin accounts for all your queries below:
Disclaimer: Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).
