While Cryptocurrency markets worldwide have been battered with billions of dollars being wiped out but India managed to stay relatively unscathed thanks to a cautious approach of the government and the RBI.
While the Reserve Bank of India (RBI) has refused to recognise cryptocurrencies and repeatedly issued warnings against trading in them, the government fired the tax bullet to wean off demand.
In India, the RBI has been resolutely opposing virtual currency from day one while the government initially was toying with the idea of regulating such instruments by bringing a law.
Industry estimates put exposure of Indian investors to crypto assets at only 3 per cent.
Industry experts said the high rate of tax and increased compliance requirement due to TDS has dampened investor mood and crypto exchanges have seen a decline in trade volume.