Our Trader Sentiment Survey reveals that 83% of active traders feel that taxes have made crypto trading difficult – WazirX Blog

WazirX, India’s largest crypto exchange, and Zebpay have launched a Trader Sentiment Survey involving ~9,500 respondents. The respondents only involved traders who have actively traded from the starting of the year till 15th April 2022. The findings revealed that 83% of traders believed that the recent tax implementation deterred their trading frequency. In addition, around 24% of respondents are contemplating shifting their trading activities to international exchanges owing to the high taxation. Further, 29% of the respondents traded lesser than the pre-tax period. 

According to the survey, 27% of the respondents sold over 50% of their portfolio before 1st April, whereas 57% sold under 10%. In the current scenario, revenue from tax collections for the government will decline as 27% of customers (34% traders and 23% holders) said they will trade less than earlier owing to the current taxation policy. The survey was conducted among a pool of traders and holders. While the traders were classified as those who traded every day, more than five times a week, or at least more than twice a week and the holders were those who traded a few times a month or were invested for the long term.

Addressing the survey findings, Rajagopal Menon, Vice President,  WazirX, said, “It is our mission to put India at the forefront of the crypto revolution by constantly innovating and building the most secure, reliable, easy to use platform and assist the industry in developing a regulated ecosystem. However, it is important that the regulations support the inclusive growth of all stakeholders involved. 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 report further indicates that the worst impacted were millennials compared to their senior counterparts. 28% of the respondents aged 18 and 35 have sold more than 50% of their holdings before 1st April. 23% wished to move their holdings to an international exchange to avail a more favorable tax climate. This emigration poses a significant risk in terms of investors falling prey to non-KYC compliant international exchanges. This is in addition to the fact that 40% of the total affected traders have already sold more than 50% of their holdings before 1st April. 

In response to the survey findings, Avinash Shekhar, CEO of ZebPay, said, “The results indicate a considerable number of respondents intend to reduce their trade frequency and participation in the category. Crypto is driving revolutionary change across the world and it is in our nation’s interests to encourage, not dissuade, participation. Restrictive policies serve as a barrier to both adoption and innovation. 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.”

The holders had continued to retain their positions, with 45% saying they would hold on to their positions. This signifies their faith that the tax provisions will be made more conducive in the longer term. 

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn’t represent any investment advice or WazirX’s official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *