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Crypto Tax Has 83% Active Traders Worried, Reveals WazirX-ZebPay Joint Survey

Crypto exchanges WazirX and Zebpay had recently conducted a Trader Sentiment Survey of 9,500 respondents which revealed that 83 per cent of traders are of the opinion that the recent tax implementation has deterred their trading frequency.

WazirX and ZebPay join survey reveals that crypto taxes have worried almost 83% traders.

The recent tax implementation has left a huge 83 per cent of the active crypto traders worried and deterred their trading frequency, a joint survey by crypto exchanges WazirX and Zebpay has revealed.

The two exchanges had conducted a Trader Sentiment Survey of 9,500 respondents involving traders who had actively traded from the beginning of the year till April 15, 2022. 

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, the holders were those who traded a few times a month, or had invested for the long term.

Findings revealed that 29 per cent of the respondents had traded lesser as compared to the pre-tax period, and that 24 per of respondents were contemplating shifting their trading activities to international exchanges, owing to the high taxation. 

Also, 27 per cent of those surveyed had sold over 50 per cent of their portfolio before April 1, whereas 57 per cent sold under 10 per cent. This is in addition to the fact that 40 per cent of the total affected traders have already sold more than 50 per cent of their holdings before April 1.

“In the current scenario, revenue from tax collections for the government will decline, as 27 per cent of customers say they will trade less than earlier owing to the current taxation policy,” the report says.

Rajagopal Menon, vice president, WazirX, said the survey indicated that reforms will be needed to aid the growth of crypto industry and investors in India.

“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,” he said.

ADVANCE TAX
The survey says millennials have been more negatively impacted by tax consequences than previous generations have.

According to the report, the tax implications has affected the millennials more adversely than their older generations. About 28 per cent of the respondents aged 18-35 years have sold more than 50 per cent of their holdings before April 1, 2022. However, 23 per cent wished to move their holdings to an international exchange to avail a more favourable tax climate. 

Avinash Shekhar, CEO of ZebPay, says, “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.”

According to experts, this immigration could lead investors falling prey to non-KYC compliant international exchanges. 
 

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