After a major tax shift, billionaire Changpeng Zhao gained greater control over the Indian cryptocurrency trading market through Binance Holdings Ltd.
As reported by Sensor Tower, Binance’s app downloads in India reached 429,000 in August, more than three times the number downloaded by CoinDCX, the second-place cryptocurrency exchange. Among the leading exchanges, only Binance saw more downloads in July than in June.
Binance Performing Well Compared to Others
Binance stands out in a market where competitors suffer from high taxes and difficulty transferring money between trading venues. There has been a 90% drop in daily volumes at important India-based platforms since a 1% tax was implemented on cryptocurrency transactions in July.
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— Crypto Nyan (@RealCryptoNyan) September 14, 2022
The current tax rule does not clearly define whether the 1% tax on crypto derivatives, including futures, applies to crypto spot transactions, says Rohan Misra, CEO of SEBA India.
Asked if Binance had already begun collecting the tax, a Binance spokeswoman said it “is monitoring the situation and will provide additional information in due time.” A spokesperson for FTX declined to comment, while inquiries were unanswered by the Indian Finance Ministry.
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A rare public spat between Binance and its Indian partner WazirX coincided with Binance’s rise, prompting Zhao to urge WazirX users to switch to Binance. As a result, the number of monthly downloads for WazirX dropped from about 596,000 in January to 92,000 in August.
A new 30% tax on crypto asset profits was added on top of a further 1% tax known as TDS, making it harsher than in many other nations. The Binance app has a larger adoption rate than most other participants. However, during the month of August, CoinDCX downloads decreased by 163,000 from 2.2 million in January. According to Fried, downloads for billionaire Sam Bankman-FTX went from 40,000 in January to 96,000 in July and 52,000 in August.