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India crypto exchanges plan long-term future as day trade flee
September 05, 2022
The products include staking to earn interest on cryptocurrency deposits, and dollar-cost-averaging functions to set aside funds to buy crypto on fixed dates, rather than trying to time the market.
Mumbai-based exchange CoinDCX, India’s first crypto unicorn, last week introduced a mobile wallet called Okto that gives access to an array of decentralized finance (DeFi) apps.
“In India, the current conditions favor long-term investment products as compared to spot or derivatives trading,” said Amanjot Malhotra, country head (India) of Turkey-based cryptocurrency exchange Bitay.
Bitay and other exchanges operating in India saw their business models upended when the government slapped a flat 30% tax on all crypto income from April 1. This was followed by a 1% tax deducted at source (TDS) on all crypto transactions above 10,000 Indian rupees (US$126) from July 1.
The TDS has slashed so-called scalp trading buying and selling within seconds or minutes to profit from small price movements as paying 1% on every trade erodes capital, Malhotra told Forkast in an emailed response to questions.
“On the other hand, in long-term investing, 1% TDS doesn’t matter as the investment frequency is too low to affect the capital inflow of the user.”
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