Binance Downloads Soar in India After Introduction of New Crypto Tax
After the introduction of a new 1% crypto tax, downloads of Binance in India have risen to become triple that of its nearest competitor.
Binance Takes off After New Tax Regime in India
India user signup soared on Binance after a 1% transaction tax went live in July, with 429,000 new downloads. Indian crypto exchanges have begun deducting the levy, unlike foreign competitors like Binance and FTX, prompting investors to switch to the latter.
New India Crypto Tax
India Finance Minister Nirmala Sitharaman introduced a 1% Tax Deducted at Source (TDS) on the transfer of virtual digital assets (VDAs) during the Union Budget 2022-23 in Parliament. The tax came into effect in July.
As per the new rules, the buyer of a VDA must deduct 1% of the amount paid to the seller (an Indian resident) as TDS. The new tax is levied on top of a further 30% tax on profits from crypto assets, which is steeper than jurisdictions such as the U.S. and U.K.
Impact on Crypto Exchanges
- Binance recorded the highest signups this year, almost triple that of runner-up CoinDCX.
- Another foreign exchange, FTX, saw almost 96,000 downloads in India in July and 52,000 in August -- up from about 40,000 in January.
- While Binance’s app downloads soared, some major Indian cryptocurrency exchanges are seeing declines in the number of user signups. For example, CoinDCX downloads dipped to 163,000 in August from 2.2 million in January.
- Daily volumes at leading India-based exchanges are down over 90% since the 1% crypto TDS took effect in July.
Check out the graph from market intelligence firm Sensor Tower:
A Binance spokesperson told Bloomberg the exchange is “currently monitoring the situation and will make further announcements regarding whether it has started collecting the levy in due course.”
Binance’s gains come amid rare public strife with WazirX, its partner in India, which led CEO Changpeng Zhao to encourage WazirX customers to defect to Binance. As a result, WazirX’s monthly downloads tumbled to 92,000 in August from about 596,000 in January.
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Related News
Prisma Finance Reportedly Hit by $9M Hack: What to Know
Prisma Finance paused its protocol operations for investigation and advised vault owners to disable delegate approval.
Reports have emerged indicating that DeFi platform Prisma Finance, fell victim to a hacking attack amounting to approximately $9 million. Cyvers, a web3 security platform, raised the alert after it detected suspicious transactions linked to the breach.
🚨UPDATE🚨Our system has detected multiple suspicious transactions with @PrismaFi and still ongoing!
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) March 28, 2024
Total loss so far is around $9M. Attacker has funded by @FixedFloat!
Our system has detected the malicious contract 2 min earlier than hack transactions!👇
Our system would… https://t.co/9myoV8DL22 pic.twitter.com/SxT5yYZy7U
Initial estimates suggest a loss of $9 million, with the attacker reportedly utilizing funds from the crypto exchange FixedFloat.
Backing up Cyvers' findings, blockchain security firm PeckShield has confirmed the attack, providing details on the assets targeted by the hacker. Among the stolen assets are Prisma mkUSD and wrapped stETH.
In response to the breach, Prisma Finance issued a statement on X acknowledging the potential exploit. The project reportedly halted its protocol operations to conduct a thorough investigation into the incident.
Additionally, Prisma Finance advised vault owners to disable delegate approval as a precautionary measure.
We are aware of a possible exploit on Prisma.
— Prisma Finance (@PrismaFi) March 28, 2024
Core engineering contributors will pause the protocol and investigate.
We'll share an update and a post-mortem.
From DeFi Future to Security Concerns
Prisma Finance was initially hailed as the future of decentralized finance (DeFi), offering solutions in the form of a new LSTFi protocol. It enabled users to mint a fully collateralized non-custodial and decentralized stablecoin, mkUSD, using Ethereum liquid staking tokens (LSTs) as collateral.
However, the recent exploit paints a stark contrast to the platform's previous reputation, raising concerns regarding cybersecurity in the DeFi space.
Rising Trends in Crypto Hacks
The hack on Prisma Finance adds to a concerning trend in the cryptocurrency space. According to a Feb. 29 report by blockchain security firm Immunefi, over $200 million worth of cryptocurrency was lost to hacks and rug pulls last February, across 32 individual incidents.
This represents a 15.4% increase compared to the same period in 2023. Ethereum remains the most targeted blockchain, with 12 attacks accounting for over 85% of the total value lost in February.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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