The global crypto market, particularly crypto exchanges, has seen a decline in value as gains have dwindled. The changes resulted in the loss of more than half of its value in global market capitalization. The changes were not limited to a specific country or market. Instead, they have spread to different parts of the world. The result was a rush of sales affecting the value of various coins. India has done nothing to help investors in the most dire times. Instead, he opted for crushing taxes and restrictions.
The results of these restrictions and taxes have started to appear as losses for crypto exchanges and investors. High taxes have forced investors to withdraw their capital as no one is willing to stake their sum for almost no gain. The decline in value of rising crypto exchanges like WazirX is a result of these changes.
Here is a brief overview of the Indian crypto market and how the exchanges have suffered from 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 proved too cumbersome as the Reserve Bank of India remained hostile to crypto due to its implications. Additionally, the ministries of finance and commerce have been reluctant towards crypto regulation, hampering crypto exchanges.
Their representatives have repeatedly said that they will wait for other countries to take action. Even though the Indian government has not opted for implemented regulations, it has been quick to impose taxes criticized by investors. This has slowed down the adoption and usage of blockchain and crypto in India. In addition, the progress of rising Indian crypto exchanges has been hampered.
The Reserve Bank of India has yet to finalize the plan for piloting blockchain technology in the banking system. They can move forward with the implementation of new policies once the pilot project brings the desired results. So, the delay due to bureaucracy has done a lot of damage to the Indian market as crypto exchanges wait for good days.
Added value of WazirX
A telling report from Bloomberg said crypto exchanges and companies are planning layoffs amid the plummeting market. This was a result of the panic created by the free fall situation in the market. The new taxes further aggravated the situation as investors who bore low prices also had to bear the burden of taxes. According to the Bloomberg report, some Indian crypto exchanges have also faced dire situations. One of them is WazirX, which has shown outstanding progress and proven to be one of the fastest growing exchanges in India. The dramatic change has been the loss of value since October 2021 when the Indian government imposed taxes.
WazirX Vice President Rajagopalan Menon told Bloomberg that they had seen a rapid increase over the previous year as they had seen record expansion over the past seven months. They grew their team of programmers from six to fifty, and it kept going. All of this was hampered in October when taxes were imposed, and the exchange saw a 95% drop in value. However, the decline has not deterred them as they plan to retain their employees.
India is not the only victim of the crypto winter, as various crypto exchanges around the world have seen their profits drop. This affected big 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 suffered by crypto exchanges. Indian stock exchanges saw a huge drop in value as the losses worsened. One of them is WazirX which saw its value drop by 95%. Even though he faces turbulence, his management has said he will not opt for layoffs. They are determined to improve the current situation and remained optimistic.
We would love to give thanks to the writer of this article for this incredible material
Crypto Exchanges Have Been Suffering Since 2021, But RBI Isn’t Giving Up
Check out our social media accounts and also other pages related to themhttps://metfabtech.com/related-pages/