The cryptocurrency market is changing rapidly in different parts of the world and a different strategy is been implemented by various governments of the world putting a lot of focus on how it is shaping up to be in that particular country and also giving a massage effect on the entire ecosystem at the end of the day as well.
If it talks about India then the nation has a very big use base in terms of people who are involved in cryptocurrencies or have a bit of knowledge of it and have invested some of their funds into the market and have been participating in the same for a while now and this massive population does play a very critical role in sleeping up the market in India for cryptocurrency and digital assets.
Keeping in mind this massive interest and the userbase did make sure that a lot of businesses set themselves up in the same sector which saw a lot of crypto exchanges starting right from the country itself and some of them did become huge exchanges as well after a while. Everything was going quite smoothly when people did start to get more awareness about cryptocurrency and they started to get more involved in it the words spread and the user base grew as well.
But the issue was that the government and the authorities in the country were not in favor of cryptocurrency being allowed in the nation and they did always try to completely ban it or restricted it in some sense they have been multiple cases that did when into the courts of the country as well about the same matter.
The attempt to ban cryptocurrencies entirely from the nation was unsuccessful as it was deemed to be useless as people will find ways to use it regardless like VPN for example. But when they noticed that the user base is growing very rapidly as well as different countries of the world are legalizing crypto, the Indian government thought that something needs to be done. After this, the taxation norms on cryptocurrencies as well as the TDS were introduced.
The TDS was highly debated when it came up and it was said to be the killer of the industry by not of experts because it is going to be applied to every transaction that is happening on the cryptocurrency aspect which surely is going to add up to the transaction fee and the end user will not be making a sensible outcome out of it.
But regardless of the opposition from many experts the terms were not repealed and they did continue to stay which made a lot of difference in the Indian cryptocurrency market which was booming at one point and it fell off quite a lot after that thing had been introduced in the cryptocurrency market of India.
CoinDCX, which was one of the first Indian crypto exchanges to become a unicorn in the year 2021 exceeding a value of 1 billion dollars had now recently laid off 12 percent of its entire workforce due to the challenging business environment. This decision came as a shock but not something that people did not guest because surely CoinDCX was the biggest Indian exchange but they did have to be facing a lot of regulatory uncertainty as well as their training volumes did see a massive drop from the past year as well as the high taxation norms and the TDS have made it very hard for Indian trade has to be trading on the platform
The founders of the company also said the same aspect and highlighted the fact that "there has been a significant impact on their volumes of trading which has been mostly because of the beer market as well as the impact of TDS on the domestic exchanges of the country which has made the business environment so much more challenging to be surviving", due to this they have to be changing their business approaches and for that, they did release a portion of their workforce.
The fact that CoinDCX is one of the most well-funded exchanges in the country makes it even more apparent how bad the business condition is in India going to all of these regulatory uncertainties as well as the drastic tax norms that the Indian government has applied for Indian traders.
Hopefully, the situation gets better over time, and we see some regulatory clarity on cryptocurrencies as well as some ease rules in terms of the tax that is applied on cryptocurrencies in the Indian market after that, the situation will be better for the businesses as well as the consumers in the market because the Indian market has massive potential. After all, the user base that they had and already do possess a very big chunk of the entire crypto market and the numbers are massive which does show a huge promise if it is handled properly.
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