BENGALURU: In the latest consolidation in the crypto space, London-based virtual currency lender Nexo on Tuesday said it will acquire up to 100% in Vauld, which recently suspended all withdrawals, trading and deposits, citing financial difficulties. “I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. We have signed an indicative term sheet with Nexo,” Vauld CEO Darshan Bathija announced on Twitter.
In a blog post, the crypto lending platform said the current market climate has led to a significant amount of customer withdrawals in excess of $197.7 million since June 12, 2022. The biggest crypto lender Nexo has over 4 million users worldwide. Meanwhile, Rajagopal Menon, vice-president of Crypto exchange WazirX, said the tax regime needs to be balanced to encourage participation and revive trading volumes. WazirX and Zebpay have launched a Trader Sentiment Survey involving about 9,500 respondents.
According to the survey, 83% of traders believed that the recent tax implementation deterred their trading frequency and 24% are contemplating shifting their trading activities to international exchanges owing to high taxation. Apart from 30% tax on crypto assets, 1% TDS is levied on cryptocurrencies and Non-fungible Tokens (NFTs). Menon said it is important that the regulations support the inclusive growth of all stakeholders involved.
The report says the worst-impacted were millennials compared to their senior counterparts. Nearly 28% have sold over 50% of their holdings before April 1, and 23% wished to move their holdings to a global exchange to avail of a more favourable tax climate. This emigration poses a significant risk in terms of investors falling prey to non-KYC compliant international exchanges.
Crypto exchanges see huge withdrawals
In a blog post, Nexo said the current market climate has led to a significant amount of customer withdrawals in excess of $197.7 mn since June 12. The biggest crypto lender Nexo has over 4 million users worldwide