Stephanie Douse 
In the midst of a merciless bear market, it appears that the majority of Indian crypto traders have chosen to hibernate with two consecutive taxes poised to nibble away at their holdings.
India is a case study for the effects that anti-crypto policies might have on a booming economy. A research from WazirX demonstrates a shift in investor mood when the Indian government implemented its second crypto law, a 1 percent tax deduction at source (TDS) on every cryptocurrency transaction, which supports the sharp fall in trading volumes across all Indian crypto exchanges.
Since the country’s introduction of a regulation that would tax investors 30% on unrealized gains, trading volumes on Indian cryptocurrency exchanges have decreased by 90–95%. In the midst of a merciless bear market, it appears that the majority of Indian investors have chosen to hibernate with two consecutive taxes poised to nibble away at their holdings.
To better understand investor mood, prominent Indian cryptocurrency exchanges WazirX and Zebpay questioned almost 9,500 active traders from the area. Unsurprisingly, the poll found that 83% of traders had to cut back on how frequently they traded as a result of TDS deductions.
Selling their interests prior to the taxation becoming law was another way for investors in India to avoid paying TDS. More than 27% of investors, the majority of whom were millennials, sold 50% or less of their holdings before April 1 compared to 57% who sold less than 10%. Rajagopal Menon, VP of WazirX, said the following in this regard:
“The survey results stipulate the need to reform certain conditions to aid the growth of crypto investors in the country which will result in economic prosperity. The tax regime needs to be balanced to encourage participation and revive trading volumes.”
The risks of trading on non-KYC compliant exchanges with little to no regulation come with Indian investors looking to international exchanges as a way to avoid taxes. Avinash Shekhar, CEO of ZebPay, added:
“While India’s crypto tax policy is a step forward, reconsidering certain aspects will help build a more supportive regulatory environment for all industry stakeholders and will ultimately contribute to overall economic progress.”
Salman Khan, an A-list Bollywood celebrity, released the GARI token, whose value fell 83 percent in a matter of hours on Monday. Investors suspected a rug pull incident, despite the fact that GARI Network dismissed the price decline as a “market event.”
Out of the total, roughly 2,300 investors, or 24 percent, stated that they were interested in testing out foreign cryptocurrency exchanges to avoid paying TDS during trade cycles, and 29 percent acknowledged that they had significantly limited their trading activity.
An internal review by GARI Network revealed no obvious hacks that might have caused the price of the token to fall. The business declared: