Crypto Exchange Vauld Suspend Its Operations | Cryptocurrency News

04-Jul-2022 By: Rohit Khandelwal

Crypto Exchange Vauld Suspend Its Operations

— What Problems Did India Face In the future

Vauld, an Indian and Singaporean exchange firm, is the most recent crypto exchange to halt operations due to a market slump, joining a growing list of others.

The exchange, which is connected to the markets in Singapore and India, announced that withdrawals had been halted early on Monday due to demand from the incredibly volatile markets.

The exchange reported that since the Terra fall, which significantly reduced liquidity, it had experienced withdrawals of close to $200 million. Additionally, it had reduced its personnel by 30% last month, blaming difficult market circumstances.

However, factors other than the cryptocurrency meltdown, like regulations, may have contributed to its downfall.

Other cryptocurrency exchanges operating in India may also be impacted by the variables, which are peculiar to that nation. According to recent data, the country's trading volumes have decreased significantly this month.

Indian crypto exchanges face severe regulatory headwinds

This year, the Indian government implemented a number of new tax legislation that has significantly restricted the use of cryptocurrency. As per the legislation, all cryptocurrency gains are subject to a 30% tax, and all cryptocurrency transactions will also be subject to a 1% tax.

In addition, the government intends to levy the highest rate in the nation—a 28 percent goods and services tax—on cryptocurrencies later this year.

Following the implementation of the 1% tax on July 1, major Indian exchanges WazirX and CoinDCX saw a decline in daily volumes of about 70% during the following week.

The tax restrictions, which are consistent with the government's harsh rhetoric against the industry, seem to have discouraged Indian cryptocurrency dealers. As a result, most local cryptocurrency exchanges are under pressure.

Market crash also pressures exchanges and volumes

Crypto exchanges are under pressure due to a significant drop in price, and India is no exception. Additionally, as the market entered a constrained, depressed trading range, the amount of global crypto trading has been progressively declining in recent weeks.

As a result of the crisis, withdrawals were also halted by a number of cryptocurrency lenders, including Celsius and Voyager Digital.

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