XREX, a Taiwanese crypto exchange, stopped INR trading on the platform a day before new crypto tax rules came into effect in India. The neobank is the only one in the world that supports the US dollar and the Indian rupee. But now, it only offers USD and crypto-to-crypto trades.
XREX said all INR services will be “temporarily suspended” from July 31 as the new crypto regulations in India came into effect on July 1. The Indian government, through the new law, will collect a 1% tax deducted at source (TDS) on crypto trades. XREX informed its users that all INR open orders and pending INR Bitchecks will be automatically canceled on June 30, 2022 at 7:30 pm India and 10 pm Taipei time. It said INR trading pairs will not be available on the new version. XREX is highly regarded for its low transaction cost fees of 0.1%. It also offers assistance to users who want to withdraw their rupees.
The crypto exchange urged users to note that all INR services, as of July 31, 2022, would be temporarily removed and unavailable on the XREX platform. The company will convert the remaining INR funds in the users’ wallet to USDT (Tether stablecoin which is pegged to the US dollar). XREX also advised users to withdraw their INR balance if they have any on the platform. Naimish Sanghvi, a consultant with XREX, said customers can still freely trade crypto-to-crypto. He highlighted that users having less than 1000 INR will see the amount auto-converted to USDT on August 1.
In January 2022, the Indian finance minister slapped a 30% tax on cryptocurrencies and it came into effect in April. Furthermore, the 1% TDS on the transfer of crypto and any digital asset came into effect this month.