𝗞𝘂𝗖𝗼𝗶𝗻 𝗔𝗰𝗵𝗶𝗲𝘃𝗲𝘀 𝗙𝗜𝗨 𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮 𝗮𝗻𝗱 𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝘀 𝗧𝗗𝗦 𝗗𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻

In an official update shared on X, the cryptocurrency exchange based in Seychelles announced its plan to initiate a one percent Tax Deducted at Source (TDS).

India has been intensifying its efforts to ensure investor safety within the crypto sector. KuCoin recently joined other international exchanges in complying with India’s Financial Intelligence Unit (FIU). In February, India’s government issued a warning to all crypto players to adhere to the country’s legal framework for continued operations.

The Seychelles-based exchange confirmed through an official update on X that it will start deducting one percent TDS from each crypto transaction made on its platform.

“Become an affiliate today and be part of the revolution. Join us as KuCoin pioneers compliant crypto trading in India,” the exchange wrote in its announcement post on X.\

🚀 Join us as #KuCoin pioneers compliant crypto trading in #India!

🇮🇳 Become an affiliate today and be part of the revolution.
#KuCoinAffiliate #KuCoinAffiliateProgram

— KuCoin (@kucoincom) April 9, 2024

Starting April 10, the tax deduction process on KuCoin for Indian investors and traders will commence. The collected TDS will be deposited to India’s financial authorities. One percent tax will be deducted from various crypto transactions, including trading activities, selling assets, obtaining and depositing crypto, and purchasing NFTs.

This TDS deduction rule was introduced by the Indian government in 2022 to monitor crypto transactions, many of which are anonymous.

Despite repeated appeals from India’s crypto community to reduce the TDS rate to 0.01 percent, the government has not made any changes to the existing one percent TDS rule.

Regarding KuCoin, it’s understandable that the exchange swiftly aligned its operations with India’s compliance criteria to continue operating in the country, particularly after encountering legal challenges in the US.

In March, US prosecutors charged KuCoin and two of its founders for failing to comply with American anti-money laundering regulations. According to US Attorney Damian Williams, the exchange processed suspicious and criminal funds, receiving over $5 billion and sending out over $4 billion.