Trading activity on crypto exchanges has almost dried up, driven by a 30% flat tax on capital gains from crypto assets and 1% tax at source (TDS) on every crypto transaction, as well as a drop in digital asset prices by up to 85%. in India.
The two biggest crypto assets, Bitcoin and Ether, are trading up to 75% lower than their all-time highs, while other major tokens such as Cardano and Solana have crashed as much as 85% on a year-on-year basis.
According to data available with CoinGecko, a digital currency price and data platform, over a 30-day period, WazirX has recorded 24-hour trading volume in the range of $1 million to $3 million. In comparison, the platform saw a 24-hour trading volume of over $535 million as of October 28, 2021.
BitBNS recorded the highest trading volume of over $110 million on 28 October 2021, while the exchange’s last 30-day volume has been between $11 million and $15 million.
On its platform, WazirX has launched Shagun and Muhurta offers, wherein users can receive free WRX tokens (WRX) using the Gift Card feature and trade crypto on the platform with zero fees for a specific time period during October 20-26. can do.
Rajagopal Menon, Vice President Marketing, WazirX, believes that the feature of gift cards can go a long way in converting no-coiners into crypto users.
In addition, WazirX is re-introducing Muhurta trading this year, whereby users can trade Bitcoin, Ether, WRX, Shiba Inu, Dogecoin and other cryptos for zero fees across all markets of WazirX (Rupee, Tether or WRX). can do.
Bitbns has launched crypto gift card option for new users. Selected people will get a chance to win cashback, where they will receive BNS tokens.
Furthermore, Bengaluru-based crypto startup, WeTrade has launched an offer where users can refer and earn one USDT (Tether) for each referral.
Collexion, a blockchain-based non-fungible token (NFT) marketplace, is offering new users to its platform the chance to win prizes.
In India, crypto as a gift has outperformed the returns from traditional assets with the price of these assets over the years.
Over a nine-year period (since the data is available on CoinGecko), bitcoin has given a return of 28,139%, while ether is up 299,496% since its launch in 2015.
Industry executives believe that crypto gift cards can stimulate the spirit of gifting during the festivities, and at the same time offer a higher value for money.
“With Diwali approaching, we know that people invest in physical assets whose value usually increases in the future. Now is the time for people to not only invest in virtual currencies based on blockchain technology, but also as gifts to others to take advantage of the benefits cryptocurrencies offer, which have gained momentum as a valuable asset over the years. ,” said Sakina Arsiwala, co-founder, Taki, a blockchain-based social network.
With offers launched during this year’s festive season, the Indian crypto industry is trying to infuse new life into the crypto activity.
According to Amanjot Malhotra, Country Head-India, Bitte, a crypto platform, Bitcoin or Ethereum can also be a good form of gift as they are currently at the bottom of the pricing.
However, when it comes to gifting crypto assets, there are certain aspects to be kept in mind.
During the Union Budget 2022, it was announced that the gift of crypto would be taxable in the hands of the recipient.
“Based on changes in the Finance Bill 2022, tax in accordance with the Income Tax provisions (Section 56) also applies to gifts of cryptocurrency. Therefore, gifts of cryptocurrency, NFTs, or other virtual digital assets are taxable in the hands of the recipient if any is obtained for a value greater than the non-relative 50,000,” said Malhotra.
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