India’s crypto tax turns out to be a boon for major exchanges like WazirX

India’s largest crypto exchange, Binance-owned WazirX has seen daily sign-ups on its platform jump nearly 30% since February 1, when the government unveiled a levy on transfers of digital assets in its annual budget, co- Founder Nischal Shetty. At rival CoinSwitch, the daily increase was 35%, according to founder Ashish Singhal.

While it may seem counterintuitive that an intensifying tax would push people to digital tokens, the move was seen as legitimizing an industry that has been in regulatory limbo amid fierce resistance from India’s central bank. Shetty said he expects around 100 million people to start investing in crypto in the next two to three years.

“With the taxation announced in the Budget, investors are now seeing a lot of clarity and visibility,” Shetty said in an interview. “Previously, people were wondering whether crypto was allowed or not.”

Neither exchange disclosed the total number of customers they have added since February 1.

Shetty said the average new customer puts in about Rs 30,000 to Rs 40,000 ($400 to $533) in their trading account. WazirX is seeing even greater interest from companies that were wary of the “optics” of investing in crypto until now, he said.

India is yet to introduce legislation governing digital assets, throwing its growing crypto industry into uncertainty. Meanwhile, the Reserve Bank of India has been an outspoken critic, with Governor Shaktikanta Das calling cryptocurrencies a threat to stability earlier this month and comparing them adversely to the Dutch tulip craze of the 17th century.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.