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Cryptocurrency exchanges bet on long-term products after trading volumes crash

The exchanges are pinning their hopes on systematic investment plans, loans, and futures trading to attract retail investors with longer-term horizons.

Mumbai / July 28, 2022 / 12:53 PM IST

After aggressively spending to promote cryptocurrency buying in the last year, bruised cryptocurrency exchanges in India are now pushing offerings such as systematic investment plans (SIPs), loans and futures trading, hoping that these long-term products will attract more retail investors.

The shift in focus from intraday and short-term trading comes amid new taxation rules and plunging valuations of cryptocurrency tokens, which led to trading volumes plummeting on the exchanges.

An estimated 85-90 percent of trading volumes on top crypto exchanges such as WazirX, Zebpay, CoinDCX and Bitbns was wiped out between January 1 and July 14, according to data from CREBACO Global.

A key reason for this was the introduction of 1 percent tax deducted at source (TDS) on virtual digital asset transactions in India from July 1, even as risk-averse investors started pulling back from crypto globally.