2, March, 2024
HomeBusinessBinance Faces Exodus of Indian Traders to Domestic Rivals Amid Government Crackdown Like WaxirX

Binance Faces Exodus of Indian Traders to Domestic Rivals Amid Government Crackdown Like WaxirX

Published on

In a surprising turn of events, Binance, the world’s largest cryptocurrency exchange, is experiencing an exodus of Indian traders to domestic rivals like WazirX following a government crackdown on offshore platforms.

Read Also | Navigating Election Volatility: Essential Strategies for Option Traders

The once-dominant Binance-WazirX split in 2022, which seemed advantageous for Binance, has taken a different trajectory due to regulatory interventions.

Indian authorities have recently restricted access to Binance and other foreign crypto exchanges operating without local registrations, leading traders to shift towards domestic platforms. This has provided a boost to competitors like WazirX, CoinDCX, and CoinSwitch Kuber, which were previously impacted by a taxing 2022 regime that drove traders to offshore exchanges.

The shift gained momentum after Apple Inc.’s App Store removed the apps of Binance and other foreign exchanges at the request of the Indian government. Deposit inflows at WazirX surged approximately 250% in the four days following the government’s compliance notice to offshore platforms on Dec. 28. Similar trends were observed at CoinDCX and other platforms, signaling a substantial impact on Binance’s market share.

WazirX and Mudrex estimated that around 70% of their fresh inflows originated from Binance, while CoinDCX suggested a figure of approximately 40%. Despite Binance stating its commitment to constructive policy-making, the platform has faced challenges with deposit outflows and increased competition from domestic players.

The government’s crackdown on offshore exchanges aligns with local competitors’ arguments about creating a level playing field after fresh taxes were introduced in 2022. The Financial Intelligence Unit’s notice highlighted the non-compliance of nine exchanges with anti-money laundering provisions, sparking a series of actions to block their websites locally.

While trading volumes remain a mixed picture, with some platforms reporting stable figures and others noting a significant uptick, the overall scenario reflects the evolving dynamics of the cryptocurrency landscape in India amid regulatory changes.

Read Also | Apple Takes Action: Offshore Crypto Exchanges Removed from App Store Amidst India’s Regulatory Scrutiny

The geopolitical context, including tensions with China, adds a layer of complexity to the ongoing scrutiny of offshore crypto exchanges in the country.

Latest articles

WhatsApp Unveils Handy Pop-Out Chat Feature for Windows Beta

WhatsApp is set to revolutionize user experience with the introduction of a new pop-out...

Not-So-Neighborly Hollywood Stars: Tales of Trespassing and Turmoil

Living next to a Hollywood celebrity might sound like a dream, but for some...

Global Recognition: ‘Drishyam’ Franchise Set for Hollywood Remake After Korean Success

The Drishyam franchise, celebrated for its triumph in India and China, is poised for...

More like this

Bumble Initiates Restructuring, Announces Workforce Reduction

Bumble, the popular dating app, has disclosed plans to terminate approximately 30% of its...

Dailyhunt Nearing Acquisition of Indian Social Network Koo

Dailyhunt is reportedly in the final stages of discussions to acquire Koo, a Bengaluru-based...

Expedia Announces 1,500 Jobs Layout Amid Shifting Travel Landscape

Expedia Group is set to trim its global workforce by 9%, amounting to approximately...
Enable Notifications OK