India Faces Pressure to Rethink Crypto Taxes Ahead of Union Budget as Trading Shifts Offshore

💡 DMK Insight

Traders are voting with their feet, and here’s why that matters: as industry leaders advocate for tax reform, the exodus to offshore exchanges is intensifying. This shift not only threatens the liquidity of domestic markets but also raises concerns about regulatory oversight. When traders opt for offshore platforms, it creates a vacuum that could lead to increased volatility in U.S. exchanges. If this trend continues, we might see significant price discrepancies between domestic and offshore assets, making arbitrage opportunities more pronounced. It’s worth noting that while tax reform discussions are ongoing, the lack of immediate action could exacerbate this trend. Traders should keep an eye on any legislative developments, as they could serve as a catalyst for either a rebound in domestic trading volumes or further declines. Watch for key announcements in the coming weeks that could influence market sentiment.