Four major Indian cryptocurrency exchanges – ZebPay, WazirX, Giottus, and CoinDCX – have seen their daily trading volumes plunge between 60% and 87% after a 1% tax deductible at source became effective on July 1.

The Monetary Authority of Singapore, the country’s central bank, has been “carefully considering” more restrictive cryptocurrency regulations. According to Tharman Shanmugaratnam, senior minister and minister in charge of MAS, the regulator is mulling measures that will offer more protection to retail market participants.

Cryptocurrency lender CoinLoan says it has temporarily reduced the withdrawal limit for lenders amid the ongoing market turmoil. The European lender’s move sees it join a number of other crypto businesses freezing or limiting withdrawals.

Top stories in the Crypto Roundup today:

• Indian Crypto Exchange Volumes Plunge Over New Tax
• Singapore’s Central Bank Weighs More Crypto Safeguards
• Crypto Lender CoinLoan Lowers Withdrawal Limits
• Chart of the Week: US GDP vs. Bitcoin Quarterly Performance

 

Indian Crypto Exchange Volumes Plunge Over New Tax

Four major Indian cryptocurrency exchanges – ZebPay, WazirX, Giottus, and CoinDCX – have seen their daily trading volumes plunge between 60% and 87% after a 1% tax deductible at source became effective on July 1.

The steep declines came from already lowered trading levels affected by a combination of plunging cryptoasset prices, unfavorable tax treatments, and difficulty getting cash onto trading platforms.

Binance-backed exchange WazirX, for example, traded $3.8 million on July 2, the day after the tax took effect. In early July of last year, it reportedly took the exchange less than two hours to reach that volume.

WazirX Vice President Rajagopal Menon noted that while long-term crypto holders are still buying and selling, market makers and high-frequency traders are “gone.”

The new tax regime was introduced by the Indian government back in February. It consists of the 1% that’s deductible at source, known as TDS, and a flat 30% tax on income from cryptocurrency investments. It also banned offsetting losses on digital assets.

Singapore’s Central Bank Weighs More Crypto Safeguards

The Monetary Authority of Singapore, the country’s central bank, has been “carefully considering” more restrictive cryptocurrency regulations. According to Tharman Shanmugaratnam, senior minister and minister in charge of MAS, the regulator is mulling measures that will offer more protection to retail market participants.

In a letter, the MAS detailed that these restrictions could “include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.” The letter signals the central bank’s plans to further its strict crypto market oversight policy.

At the start of the year, the MAS cracked down on cryptocurrency marketing campaigns and enacted a licensing regime for crypto businesses in the country.

Crypto Lender CoinLoan Lowers Withdrawal Limits

Cryptocurrency lender CoinLoan has temporarily reduced the withdrawal limit for lenders amid the ongoing market turmoil. The European lender’s move sees it join a number of other crypto businesses freezing or limiting withdrawals.

CoinLoan noted that the issues affecting other companies in the space, including Celsius, Voyager, Three Arrows Capital, and BlockFi, have triggered a wave of withdrawals on its platform. The firm noted:

“The interest we pay on the Interest Accounts is yielded by issuing overcollateralized loans to other platform users. Hence in some instances, the estimated date of a complete withdrawal of assets from the Interest Accounts comes before, not after, loan closure.”

The company has, as such, imposed a $5,000 per every 24 hours withdrawal limit to “balance the flows of funds and prevent liquidity-related interruptions.”

Chart of the Week: US GDP vs. Bitcoin Quarterly Performance

Last week, the US released the final figures for its GDP growth in the year's first quarter. It recorded its first drop in economic output since the second quarter of 2020.

Lower economic output and poor market conditions heavily impacted risk-on assets, with Bitcoin recording its worst quarter in a decade.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.