CoinDCX: Cryptocurrency transaction tax causes 95% of India’s trading volume to go to overseas platforms

Indian cryptocurrency exchange CoinDCX believes that the imposition of taxes on digital asset transactions in India is counterproductive and should be reduced. Prior to the imposition of cryptocurrency transaction taxes in India, CoinDCX was valued at over $2 billion. Gupta stated that CoinDCX's revenue is one-third of what it was before India's tax adjustment, and compliance costs have increased since India implemented anti-money laundering regulations for the cryptocurrency industry. In early 2023, the company laid off 12% of its employees, with a current staff of approximately 550 people. India began imposing a 1% TDS tax on cryptocurrency transactions 16 months ago, claiming that its purpose was to track buying and selling behavior rather than increase revenue. However, Sumit Gupta, CEO of CoinDCX, believes that taxation has led to 95% of India's trading volume flowing to overseas platforms, making it difficult for local officials to monitor these platforms.