Trading volumes at Indian crypto exchanges are recovering on the back of a rally in digital asset prices. Volumes had dropped after the government had imposed steep taxes.
Trading volumes at crypto exchange WazirX rose about 35% to US$7.18 million on July 20, from US$5.30 million on July 1, according to data from crypto index tracker nomics.com, as Bitcoin prices rallied to briefly cross the US$24,000 mark on Wednesday.
Another Indian crypto exchange, CoinDCX, saw a roughly 63% increase in volumes to US$3.37 million on July 20, up from US$2.07 million on July 1, data showed.
Volumes on Indian exchanges had dropped more than 60% after a 1% tax-deducted-at-source (TDS) kicked in from July 1 on the sale and transfer of crypto assets above 10,000 Indian rupees (US$125).
Trading volumes had slumped to their lowest in years after a 30% flat tax kicked in on April 1, according to research by Crebaco.