Crypto exchanges launch offers to combat up to 99.8% drop in volumes this Diwali. REUTERS/Dado Ruvic/Illustration/File Photo (X02714)

Cryptocurrency exchanges launch offers to combat up to 99.8% drop in volumes on Diwali

Driven by a flat 30% tax on capital gains from crypto assets, a 1% tax rebate at source (TDS) on every crypto transaction, as well as an 85% drop in the price of digital assets, trading activity on crypto exchanges in India has almost dried up. .

The two largest crypto assets, Bitcoin and Ether, are trading up to 75% lower compared to their all-time highs, while other major tokens like Cardano and Solana have crashed up to 85% year-over-year.

According to the data available with CoinGecko, a digital currency price and data platform, in a period of 30 days, WazirX recorded a 24-hour trading volume in the range of $1 million to $3 million. In comparison, the platform saw a 24-hour trading volume of over $535 million on October 28, 2021.

BitBNS recorded a peak trading volume of over $110 million on October 28, 2021, while the exchange volume for the last 30 days ranged between $11 million and $15 million.

WazirX has launched on its platform Shagun and Muhurat Offers, where users can get free WRX tokens (WRX) using the gift card feature and trade cryptocurrencies on the platform without fees for a specified period of time during October 20-26.

Rajagopal Menon, Vice President of Marketing, WazirX believes that the gift card feature can go a long way in converting currencyless to cryptocurrency users.

Moreover, this year WazirX is reintroducing Muhurat Trading, under which users can trade Bitcoin, Eether, WRX, Shiba Inu, Dogecoin and other cryptocurrencies for zero fees across all WazirX markets (Rupee, Tether or WRX).

Bitbns has launched a crypto gift card option for new users. A select few will have a chance to win cashback, as they will receive BNS tokens.

Furthermore, WeTrade, a Bengaluru-based cryptocurrency startup, has launched an offer where users can refer and earn USDT (Tether) for each referral.

Colexion, a blockchain-based non-fungible token (NFT) marketplace, is offering new users of its platforms a chance to win prizes.

In India, cryptocurrencies as a gift have rebounded over the past few years as the prices of these assets have outpaced the returns on traditional assets.

Over nine years (since data is available on CoinGecko), Bitcoin has generated a return of 28,139%, while Ether is up 299,496% since its launch in 2015.

Industry executives believe that crypto gift cards can evoke feelings of gifting during festivities, while at the same time giving a higher value for money.

“With Diwali approaching, we know that people are investing in physical assets that usually increase in value in the future. Now is the time for people not only to invest in virtual currencies based on blockchain technology but to take advantage of the benefits offered by cryptocurrencies,” said Sakina Arsiwala, Co-Founder. As a gift to others who have gained momentum over the years as a valuable asset.Taki, a blockchain-based social network.

With offers launched during this year’s festive season, the Indian crypto industry is trying to breathe new life into the crypto business.

According to Amanjot Malhotra, India’s head of state, Bitay, cryptocurrency, Bitcoin or Ethereum could also be a good form of gift as they are currently on the lower price side.

However, when it comes to gifting crypto assets, there are certain aspects to keep in mind.

During the 2022 Union Budget, it was announced that the gift of crypto would be taxable in the hands of the recipient.

“Based on the changes in the Finance Act 2022, the tax in accordance with the income tax provisions (section 56) applies to the gift of cryptocurrency as well. Therefore, gifting cryptocurrency, NFT or other virtual digital assets is taxable in the hands of the recipient if it is received from someone who is not a relative worth more than R50,000 Malhotra said.

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