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Indian Crypto Market suffocates under strict central bank restrictions

Indian Crypto Market

The Indian Crypto Market is suffocating under the constant pressure from the newly implemented tax regime and central banking restrictions. Why Indian Government authorities are playing with blockchain technology? Why they cannot braise the new evolution towards greater prospects and opportunities? Some more questions like these are arousing within the crypto enthusiast and retail investors and yet they don’t have any valid and logical answers.

Ever since the announcement of the 30% tax deduction and its implementation on April 1, the Indian Crypto market has realized a constant downfall in trading by 60%. While the exchanges were figuring out some solid solutions for their customers, the NPCI (National Payments Corporation of India) released a statement that they do not know about the crypto exchanges facilitating their customers with UPI payment methods.

Source: Coingecko-WazirX

As the recently released statement has certainly left the Indian crypto Exchange deserted, they have decided to implement peer-to-peer deals on transactions. Also, some platforms have started accepting direct payments from crypto buyers. However, in the bloodbath scenario, the crypto industry is working effortlessly to bypass the government and banking restrictions in all possible ways.

According to the P2P facility, the buyer is directly connected with the seller and the transactions do not happen on the platform. It is a simple process where, the buyer can transfer money to the seller’s account directly, after which the seller can move digital assets to the buyer’s wallet. This way, there are no transfers reported to the banks through crypto exchange platforms.

Source: Twitter

Also Read: Chinaโ€™s banking association proposes a series of restrictions on NFTs in the country

Collapsing Indian Crypto Market

Even Coinbase got disappointed when they launched their service in India but were forced to terminate the payment method due to huge pressure from central banks. The mainstream payment system was the only Unified Payment Interface (UPI) service on their portal which is used in a large ratio in India.

Not only this, but the popular Indian exchange platform CoinSwitch Kuber also stopped crypto deposits and withdrawals made through the UPI network on the platform.

According to market analysts and industry experts, the government is trying to make things harder for investors to purchase or withdraw any crypto or digital asset. With this, the Indian investors and major retail sectors have already started moving their funds overseas using international exchanges.

In addition, there is a constant fear of the real impact on trading volumes when 1% will be slapped on the traders and investors. Certainly, the government and central authorities are not considering and following a win-win situation for both the parties. If better steps are not taken timely, such tax movements might lead to the collapse of the largest crypto economy in the world.

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