The next step was to announce a 30% tax on the profits of cryptocurrencies in the federal budget tabled by the federal government on February 2, 2022. Nirmala Sitharaman also announced that an additional 1% tax will be levied on each transaction.
The crypto market, which had been on a downward trend following the announcement, saw an overall decline. The crypto market has not yet recovered from that decline.
Meanwhile, Coinbase, a popular crypto exchange platform abroad, made its mark in India in March. The next day it said that Indian online payments had nothing to do with NPCI.
Following this, Indian crypto companies suspended all UPI payment options. Investors thus lost the option of buying and selling cryptocurrencies.
Crypto exchange then began to weaken in India. It was also a huge blow to Coinbase. Further the company is on the verge of leaving India as it is unable to do any business in India.
Coinbase CEO Brian Armstrong then went on to say that cryptocurrency trading in India is “difficult” and that we are on the verge of exiting.
He was followed by Sathvik Vishwanath, Co-Founder, CEO and co-founder and CEO of Unocoin, India’s leading cryptocurrency exchange, which supports the coin founder’s idea.
He said that due to India’s strict cryptocurrency laws, foreign crypto companies are afraid to come to India.