Crypto News India – On July 8, 2025, Bybit, a leading global cryptocurrency exchange, began applying an 18% Goods and Services Tax (GST) on trading, staking, and withdrawal fees for Indian users, effective July 7, as reported. This move complies with India’s stringent tax regulations, compounding the existing 30% capital gains tax and 1% Tax Deducted at Source (TDS) on crypto transactions. For traders on StablecoinNews.org tracking stablecoin prices, this “triple tax trap” significantly raises costs for dealing in stablecoin examples like Tether (USDT) and USD Coin (USDC), which dominate the stablecoin list.
The GST applies to all Bybit services, directly deducted from assets received, impacting trading volumes of stablecoins and volatile assets like Bitcoin (not a stablecoin) and XRP (also not a Stablecoin XRP, despite misconceptions). Crypto influencer Keyur Rohit, with 176K+ X followers, warned that the tax could drive Indian traders to decentralized finance (DeFi) platforms, where tax enforcement is harder. India’s high tax regime, unchanged since 2022, contrasts with the U.S.’s GENIUS Act, which fosters stablecoin innovation through clear regulations.
Bybit’s compliance reflects a broader trend among exchanges like Binance, which also face India’s regulatory scrutiny. The tax may reduce trading activity, as users seek platforms with lower costs, potentially impacting stablecoin liquidity. India’s restrictive policies could hinder its No. 1 global crypto adoption ranking, achieved despite high taxes. As stablecoin prices remain stable, traders must weigh costs against benefits, with Bybit’s move signaling a maturing but challenging Indian crypto market.
