A Bloomberg report on Wednesday claimed Binance app downloads in India jumped to 429,000 in August, the highest this year.
This comes just months after the country implemented strict taxation on local trade.
Binance India Wins
Binance is the only major exchange whose app downloads saw an increase in August compared to July, the month the 1% transaction tax in the form of TDS went into effect, according to a report by Bloomberg, citing data from Sensor Tower, which tracks mobiles. and Internet data to provide actionable insights to its customers.
Binance app downloads in India were three times higher than those of CoinDCX, which had downloads of 163,000 for the month compared to 2.2 million in January. WazirX downloads fell to 92,000 in August from around 596,000 in January.
FTX saw its number drop to 52,000 in August from 96,000 in July, but is still maintaining an upward trend from 40,000 in January. Coinbase app downloads fell to 16,000 in August from 31,000 in June.
Volume of access to tax changes
The provision of a 1% transaction tax and a 30% tax on crypto gains introduced in April, coupled with the complexity of tax reporting, drove traders away from Indian exchanges, reducing volume by approximately 90%.
But it looks like it’s not entirely a loss for the crypto market, given the large number of Indian traders flocking to Binance. The world’s largest trading platform by volume did not say whether it deducts 1% TDS on all trades, as required by the recent tax change.
While Indian exchanges cannot escape tax compliance requirements, their foreign counterparts – Binance and FTX, in particular, have not deducted the tax.
Ambiguity in tax compliance
A spokesperson for Binance said it was monitoring the situation and would make further announcements in due course, the outlet said, adding that FTX declined to comment while India’s finance ministry did not respond to questions. by e-mail in this regard.
Another factor that seems to have worked in Binance’s favor is low fees, attractive offers, and a popular P2P marketplace where it’s easier to move coins and cash around.
Indian traders are flocking to Binance following a rare public spat between Binance CEO Changpeng Zhao and WazirX CEO Nischal Shetty. It seems that the tax change and its move away from WazirX helped Binance stand out.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.