WazirX, a major Indian cryptocurrency exchange, experienced a significant decline in trading volume in 2023, dropping by 90% compared to the previous year. The decrease is attributed to regulatory pressure from the Indian government and the introduction of a 30% tax on virtual currencies along with a 1% deduction for each crypto transaction.
In 2022, WazirX's trading volume reached $10 billion, while in 2023, it plummeted to $1 billion, marking a substantial decline. The regulatory environment for cryptocurrencies in India has become more stringent, with the government implementing measures to curb money laundering and enforce taxation on crypto transactions.
WazirX, run by Nischal Shetty, faced scrutiny from the Enforcement Directorate (ED) in 2022, leading to the freezing of accounts worth Rs 64.67 crore. The investigation focused on WazirX's alleged involvement in assisting Indian fintech firms and loan apps with money transfers to unknown foreign wallets. The ED later lifted the ban on WazirX's access to its bank accounts, allowing the exchange to resume its banking operations.
Additionally, WazirX had a dispute with Binance, a global cryptocurrency company, earlier this year. Binance ceased providing wallet services to WazirX, alleging false and unsubstantiated claims. The challenges faced by WazirX highlight the evolving and complex regulatory landscape for cryptocurrency exchanges in India.
(With Agency Inputs)
Read also| Global Positivity Aids Equities as Consolidation Marks Second Consecutive Day
Read also| Report Says Ola Electric and FirstCry Set to Submit Draft IPO Papers Next Week
