Majority of crypto traders are facing issues with recent tax implementation: Survey

Haripriya Sureban | | Updated on: Jul 05, 2022
The survey was conducted among a pool of traders and holders

The survey was conducted among a pool of traders and holders | Photo Credit: ozgurdonmaz

The report surveyed 9,500 traders who had actively traded from the beginning of the year till April 15

A survey reveals that 83 per cent of active cryptocurrency traders have issues with the recent tax implementation and that it has deterred their trading frequency.

In addition, around 24 per cent of respondents are contemplating shifting their trading activities to international exchanges owing to the high taxation. Further, 29 per cent of the respondents traded less than in the pre-tax period.

The findings are from the ‘Trader Sentiment Survey’ conducted by two crypto exchanges, WazirX and Zebpay. The report surveyed 9,500 traders who had actively traded from the beginning of the year till April 15, 2022.

Rajagopal Menon, Vice President, WazirX, said, “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.”

Lesser trading

According to the survey, 27 per cent of the respondents sold over 50 per cent of their portfolio before April 1, whereas 57 per cent sold under 10 per cent. In the current scenario, revenue from tax collections for the government will decline as 27 per cent of customers (34 per cent of traders and 23 per cent of 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. 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.

Published on July 05, 2022
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