Indian Crypto Exchanges Fail, But The RBI Remains Confident In The Blockchain

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Exchanges in India work to deal with the consequences of the crypto winter as it spreads. However, the RBI wants to use blockchain for something else.

Numerous exchanges in India have suffered due to the drop in the popularity of cryptocurrencies, the government’s too rigorous regulation of the sector, and regulatory ambiguity.

The Reserve Bank of India (RBI), which is “anti-crypto,” is nevertheless working on a pilot project to integrate blockchain technology into the financial sector.

WazirX Volume Has Decreased 95% in the Past Year

According to a June 25 Bloomberg story, most Indian businesses are attempting to move cautiously as they prepare for the crypto winter and increased tax rates, while the major players in the market are cutting workers.

Bloomberg reports that since October of last year, the trade volume on WazirX, one of India’s fastest-growing cryptocurrency exchanges, has decreased by 95% due to new tax laws.

According to WazirX vice president Rajagopalan Menon, last year was the company’s “golden era,” as they went from employing six programmers to fifty in just seven months.

He insisted that the company is eliminating all non-critical costs to survive the crypto winter. Therefore they are only hiring vital employees, even if they don’t have any big layoff plans.

Not just Indian exchanges are being impacted by the crypto winter. Cryptocurrency exchanges and other businesses in the sector have been forced to cut personnel worldwide to survive the crypto winter. Some platforms that have reduced employees include Crypto.com, Coinbase, Gemini, Robinhood, Bitso, Bybit, and Blockfi. For those interested in learning more about the situation in India, the regional cryptocurrency exchange Vauld also let go of 30% of its whole personnel.

According to Business Insider, nearly 1700 employees were let go by cryptocurrency companies in just June.

India Introduces New Taxes On Activities Related To Cryptocurrency

It should be mentioned that India now taxes cryptocurrency transactions with a 30% tax on the profits earned, in addition to a new tax that will go into effect on July 1 and subtract 1% from all cryptocurrency transfers.

In light of this, Chainalysis reports that the nation is no longer regarded as favorable for the cryptocurrency industry as it was a few months ago when the sector had a 600% growth. In actuality, the current tendency is completely the reverse.

The nation’s central bank of India uses blockchain technology in a pilot project alongside other state-owned banks and foreign businesses like IBM to combat the widespread fraud that plagues the nation’s financial system.

The government is aware that the underlying technology of cryptocurrencies can be a useful instrument to help it exert better control over the financial system and prevent criminal activities and practices, even though it continues to pressure cryptocurrency startups..

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