Trading volume at major Indian cryptocurrency exchange WazirX plummeted to $1 billion in 2023 as the business faced more regulatory pressure in its native region as well as a worldwide collapse in digital asset values and stocks.
The overall amount of cryptocurrencies exchanged on WazirX’s platform this year was 90% lower than in 2022, when volumes reached $10 billion, and 97% lower than in 2021, when volumes reached $43 billion.
WazirX, which has a dispute with Binance over the Indian firm’s ownership, emphasized the newest data in a public statement on Tuesday, claiming the $1 billion transaction total. However, the exchange refused to contextualize the statistic by ignoring the significantly higher levels witnessed when the crypto mania peaked in 2021 or even 2022, prior to the major sell-off.
The 97% drop in trading volume comes as WazirX confronts increasing regulatory challenges from Indian authorities, leaving the country’s once-thriving cryptocurrency industry struggling for survival. Last year, India started taxing virtual currencies, imposing a 30% tax on profits and a 1% deduction on each crypto transaction. Indian MPs have often lauded Prime Minister Narendra Modi’s leadership for shielding Indian residents from the crypto market’s scams and steep drop in asset values.
Early this year, the New Delhi-based think tank Esya claimed that the local taxation legislation has prompted many Indian traders to utilize overseas platforms like Binance and Coinbase. Later, Coinbase stopped accepting new users in India.
India’s escalating governmental assault on cryptocurrencies has chilled local investors, who were previously eager to support the country’s crypto companies. According to those familiar with the situation, the unfavorable environment, which Binance previously stated as a reason for its own concern over Indian development, has made venture capital companies drastically leery of exposure to the troubled industry.
According to people familiar with the situation, several of the top India-focused VCs that eagerly funded crypto firms only a year ago have subsequently shifted forcefully into other areas.
