The global crypto market especially crypto exchanges have seen a downturn in value as the gains have lowered. The changes have resulted in the loss of more than half of its value in the global market cap. The changes were not limited to any specific country or market. Instead, they extended to the different parts of the world. The result was a rush of sell-offs affecting the value of various coins. India didn’t do anything to help investors in the gravest times. Instead, it has gone for crushing taxes and restrictions.
The results of these restrictions and taxes have begun to appear as losses for crypto exchanges and investors. The hefty amount of taxes has forced investors to withdraw their capital, as no one is ready to stake their sum for almost no gains. The drop in value of rising crypto exchanges like WazirX results from these changes.
Here is a brief overview of the Indian crypto market and how exchanges have suffered due to restrictions and recessive trends.
Recessive crypto exchanges and taxation in India
Crypto winter has asserted itself more than any other country in India. The losses were triggered by many reasons, including a bearish global market, geopolitical situation, and restrictive regulations in India. The latter has proved too heavy as the Reserve Bank of India has remained hostile to crypto because of its implications. Also, the finance and commerce-related ministries have shown reluctance regarding crypto regulation, impeding crypto exchanges.
Their representatives have repeatedly said they will wait for other countries to take any steps. Even though the Indian government hasn’t gone for implemented regulations, it has hastened to impose taxes criticized by investors. It has slowed down the adoption and use of blockchain and crypto in India. Also, the progress of rising Indian crypto exchanges has been impeded.
Reserve Bank of India hasn’t yet finalized the plan to pilot the blockchain technology in the banking system. They can go forward with the implementation of new policies once the pilot project brings desired results. So, the delay due to red tape has caused much harm to the Indian market while crypto exchanges wait for good days.
Drop in the value of WazirX
An eye-opener report from Bloomberg said that crypto exchanges and companies are planning layoffs amid the crashing market. This resulted from the panic created by the free-fall situation in the market. The new taxes exacerbated the situation further as the investors bearing low prices had to carry the burden of taxes as well. According to the report from Bloomberg, some Indian crypto exchanges have also faced dire situations. One of these is WazirX, which showed exception progress and proved to be one of the fastest-growing exchanges in India. The dramatic change was the loss of value since October 2021 as the Indian government imposed taxes.
The vice-chairman of WazirX, Rajagopalan Menon, told Bloomberg that they saw a speedy rise in the previous year as they saw record expansion in the past seven months. They expanded their team of programmers from six to fifty, and it continued. All this was impeded in October when taxes were imposed, and the exchange saw a decline of 95% in value. However, the decline hasn’t disheartened them as they plan to retain their employees.
India is not the only victim of crypto winter, as various crypto exchanges across the globe have seen a decline in profits. It has affected major names like Coinbase, Robinhood, Bitso, Bybit, etc.
The global crypto market has seen a decline in value and its impacts are evident from the losses that crypto exchanges have suffered. Indian exchanges have seen a considerable decrease in value as the losses worsened. One of these is WazirX which saw a drop of 95% in value. Even though it is facing turbulence, its management has said it won’t go for layoffs. They are determined to improve the current situation and have remained optimistic.