India’s Cryptocurrency Exchanges Suffer, But the RBI Remains Committed to Blockchain 

As the crypto cold spreads, Indian exchanges attempt to mitigate its impact. However, the RBI wants to give blockchain a new function. 


In India, the crypto market collapse and the government’s too tight management of the sector have led many exchanges to suffer, not just because of a drop in popularity but also because of legal uncertainty. 

The “anti-crypto” Reserve Bank of India (RBI) keeps working on its pilot project to use blockchain technology in the financial sector. 

The volume of WazirX has decreased by 95% during the last year 

The majority of Indian firms are attempting to tread carefully as they prepare for the crypto winter and increased tax rates, according to a June 25 Bloomberg story. This comes as major crypto sector players are laying off personnel. 

Since October of last year, Bloomberg reports that trading activity on WazirX, one of India’s fastest-growing cryptocurrency exchanges, has decreased 95 percent due to new tax laws. 

The vice president of WazirX, Rajagopalan Menon, told Bloomberg that last year was the company’s golden period since they expanded from employing six programmers to fifty in only seven months. 

To survive the crypto winter, the business is slashing all non-essential expenditures and only employing crucial roles, he promised. 

“We are simply making essential employees and are not spending any money. Literally, it’s crypto winter here,” 

The crypto winter affects more than just Indian exchanges. Due to the crypto winter, cryptocurrency exchanges and other firms in the field have been compelled to cut their workforces globally. A number of platforms, including, Coinbase, Gemini, Robinhood, Bitso, Bybit, and Blockfi, have seen personnel reductions. And for those interested in learning more about the situation in India, the local cryptocurrency exchange Vauld let off 30% of its workers. 

Business Insider reports that crypto companies laid off around 1,700 employees in June alone. 

India Introduces New Cryptocurrency-Related Taxes 

It should be mentioned that India is now taxing crypto transactions at a rate of 30 percent on the income gained, in addition to a new tax that will take effect on July 1 and subtract 1 percent from all cryptocurrency transfers. 

Read More here, Indian crypto traders may face a 28% tax on crypto transaction

According to Chainalysis, the nation is no longer as favorable for the crypto business as it was a few months ago when the sector increased by 600 percent. In reality, the current tendency is just the reverse. 

However, the Reserve Bank of India, the country’s central bank, is collaborating with other state-owned banks and multinational corporations like IBM on a pilot project to apply blockchain technology to combat fraudulent activities that plague the country’s financial system. 

This indicates that, while continuing to exert pressure on cryptocurrency startups, the government recognizes that the technology behind cryptocurrencies may be a beneficial instrument for exercising better control over the financial system and preventing criminal actions and practices. 

Hungry for more information?

Check out the Latest NFT News!

For more interesting updates on NFTs, connect with NFTHI on Twitter and Instagram.

Join us on Telegram!

NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.

Conduct thorough research before you start with NFT trading.

Share This Post

Related Posts

Polygon to feature in Disney’s 2022 Accelerator program

Layer-2 scaling platform Polygon has been selected to participate...

Meta Luxury Italian Brand Visionnaire Launches First NFT 

At the 26th Miart, Visionnaire NFT will be introduced....

Coinbase to track U.S. Politicians Crypto Friendliness says CEO Brian Armstrong

Coinbase wants to allow U.S. users to track how...

GameStop’s NFT daily income drops below $4K amid market struggle

GameStop’s NFT marketplace which opened in mid-July has seen...

My Neighbor Alice Game Alpha Season 1 Release Date Announced 

My Neighbor Alice has officially announced the premiere date...

Ducati to enter Web3 Space with Web3 Pro

Web3 Pro, a leading Silicon Valley-based Web3 company, has...