The global cryptocurrency market has registered a broad sell off over the past few months. The biggest of the digital tokens’ prices have dropped by around 60% since the beginning of the year.
India’s conservative approach
According to reports, experts believe that India managed to predict the unfavorable economic headwinds. It has helped the Indian population from economic ruin. It added that the government’s conservative approach might have helped.
The Indian authorities have always been discouraging the use of crypto in the nation. It took the stand not to legitimize its trading. Earlier, it mentioned that they have imposed the crypto tax because people are profiting from it.
Recent incidents like Three Arrows Capital (3AC) entering liquidation after falling short in paying the loan have given a major hit to the crypto market.
As per reports, the 3AC representatives filed for a bankruptcy petition. It highlighted that the Chapter 15 filing stops the creditors from seizing the company’s assets.
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It added that at one point its digital holdings were worth around $10 billion. However, last week Monetary Authority of Singapore (MAS) called out 3AC for breaching financial laws.
Crypto trading vol down by over 60%
Meanwhile, the Indian authorities have even applied a ban on the use of digital assets. However, it was overturned by the apex court of the nation. In order to track its trading, the government applied a 1% tax deducted at source (TDS) on crypto transactions. This rule came into play on July 1.
The 1% TDS is the second major provision after the introduction of the major Crypto tax of 30% in the country, Meanwhile, this primary tax is applicable to the capital gains on all the transactions after April 1.
The Indian crypto community has shown its descent against the new applied provisions. Its major impact can be seen by dropping trading volume on the local crypto exchanges. Over the last five days, its have plummeted by over 60%.
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