The effects of a large tax change have prompted Binance Holdings Ltd.’s billionaire CEO Changpeng Zhao to strengthen his control over the Indian cryptocurrency trading business.
According to data from market intelligence company Sensor Tower, downloads of Binance’s app in India increased to 429,000 in August, the biggest number this year and nearly treble that of second-place CoinDCX.
Among the leading exchanges, only Binance saw more downloads in India than in July.
The owner of the largest cryptocurrency exchange is struggling in a market where competitors are suffering from high taxes and the challenges of moving money into and out of trading venues. in the world stands apart. Since a 1% tax on cryptocurrency transactions went into force in July, daily volumes at important India-based platforms have decreased by more than 90%.
While cheap costs, a wide range of offerings, and a well-liked peer-to-peer marketplace have helped Zhao outpace rivals, another cause is the difference between how foreign exchanges and those with Indian roots manage the transaction tax levied on domestic users.
According to multiple users of the applications who wished to remain anonymous because the issue involves tax legislation, Indian-origin platforms have started to deduct the duty, while many of their foreign competitors, like Binance and FTX, haven’t. Investors have moved to the latter as a result of this.Traders can see a gap in the legislation’s loose application and a hazy area over whether the law covers more complicated transactions.
In contrast to reductions for the majority of other participants, the Binance app has a wider adoption. For instance, according to Sensor Tower statistics, CoinDCX downloads decreased from 2.2 million in January to 163,000 in August.
From roughly 40,000 downloads in January to nearly 96,000 in July and 52,000 in August for billionaire Sam Bankman-FTX. Fried’s
Coinbase Global Inc., a San Francisco-based company, claims to adhere to the regulations governing crypto transaction taxes. In India, downloads dropped from about 31,000 in June to 16,000 in August.