Crypto Trading Stalls in India as New Tax Takes Effect

11 July 2022, 01:06

India’s new crypto transaction tax – a 1% tax deducted at source (TDS) – has seen crypto trading in India drop drastically. Exchanges in India have seen trading volume drops of over 50% and going as high as 87% as the new tax took effect. This comes amid already deflated trading volumes as cryptocurrencies enter a slump period. The new TDS comes on top of a flat 30% tax on income from crypto investments that was imposed earlier in February, which also does not allow offsetting from losses, unlike stocks and bonds. 

Crude Futures Tumble on Fears of Demand Destruction

Brent futures dropped over 9% overnight as an impending recession stoked fears of demand destruction. WTI also sank, dropping below $100 for the largest one-day dip since March. Meanwhile, the resolution of an oil workers’ strike in Norway – which would have resulted in a drop in production by 130,000 barrels per day – has also contributed to the downside pressure for oil.  

Boris Johnson Announces Resignation

Scandal-plagued UK Prime Minister Boris Johnson has announced his resignation after losing the support of some of his closest allies including ministers and Conservative lawmakers. Over 50 ministers and aides have quit – among which the most high-profile included Chancellor of the Exchequer Rishi Sunak and Health Secretary Sajid Javid. The British pound saw a small lift of 0.6% at the news, while UK equities also enjoyed a rise, with the FTSE 250 up over 1%. Johnson will remain as the PM until a new one is chosen in October. In the meantime, Johnson has said that he will not seek to implement new policies or make major fiscal decisions.