Dear Tribe,
In light of recent developments, we understand you are worried and have your set of apprehensions. But please be assured that all your assets – Crypto & INR are safe on WazirX. Our operations are being conducted as usual. To maintain transparency, our founder and CEO, Nischal Shetty, has clarified multiple points openly as well.
While fear, uncertainty, and doubt are natural in these times, we request you to keep calm and remember one thing – Why you trusted us and the idea of Crypto in the first place.
Our solid fundamentals and the desire to make crypto accessible to all Indians has and will remain intact. Be assured that we are cooperating tirelessly with all Law Enforcement Agencies and are in conversations with stakeholders for the next steps.
While HODLing, transferring, or liquidating is your choice, we request you to not make any hasty decisions due to the unsolicited coverage. As you are aware, Crypto is in its early years and is a highly volatile asset. It’s obvious that entities and folks associated with this promising asset class will have to face the brunt. We strongly believe that this too shall pass and अच्छे दिन आएंगे। However, without your support, cooperation, and patience, this will be impossible.
While the current scenario is challenging, you know what the good part is? As a community, we have seen people come closer. Thank You to everyone standing by our side. Your support means a lot to us.
On the flip side, we also noticed that users are opting to withdraw their funds to international exchanges. However, in the process, they may unknowingly be non-compliant. Here is why we say so:
As you are aware, from 1 July 2022, tax as TDS has to be deducted on crypto transactions. Simply put, It is mandatory for the buyer (whether a resident of India or not) to deduct 1% (5% in some cases) of the amount paid to the Indian seller for transactions more than Rs.10,000. This tax deduction must be made at the time of credit of the sum to the account of the resident or at the time of payment, whichever is earlier.
Now, it is important to note that International exchanges do not have Indian TDS frameworks in place. Also, most of them have no visibility over the user’s real identity or the scale of transactions. Because of this, the onus of deducting and depositing TDS is on the individual/buyer/user, which is nearly impossible.
On the other hand, to support our users, we have scaled up our systems. We incorporated the TDS mechanism as per the Government’s notification from day one of implementation.
Hence we request you to ponder over these regulations and our hard work, not panic and take the right decision.
We would like to reiterate that your funds are safe with us, and we wish to continue to serve you. Do keep supporting us like you always do.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
