India’s crypto tax rules, which went into effect in April, have resulted in local exchanges ceding the lion’s share of the market to those operated by foreign players.
According to the New Delhi-based think tank Esya, Binance, Coinbase, and other foreign exchanges held 67.6% of the crypto market share in India as of October 2022, up from 50% in November 2021. According to the report, $3.8 billion of trading volume shifted from domestic centralised exchanges to those operated offshore between February 2022, when India announced its crypto taxation policy, and October 2022. (PDF). Indian exchanges such as WazirX, CoinSwitch, and CoinDCX lost an astounding 81% of their trading volume between July and October, according to Esya, blaming the trend on local TDS rules.