WazirX has changed the discount policy in its fee structure.
Binance owned cryptocurrency exchange WazirX has updated its trading fee structure.
Earlier users could avail of a 50% discount on the trading fees if they paid it in WRX token, the native token of the exchange.
This policy is no longer valid.
On Monday, WazirX announced that effective from January 24, 2022, the WRX token will not be used to pay trading fees in the INR markets.
Rather, it will help in availing a discount.
From now on, the amount of WRX you hold will decide the amount of discount you are eligible for.
For instance, a user holding 201 WRX tokens WRX buys ₹1000 worth BTC in the INR market will only pay 0.15% in the trading fee, as given in the table above. The fee will amount to 1.5.
However, one can pay trading fees in WRX only in the USDT, BTC, and WRX markets.
Possible Reason for the Change
Last month, the Mumbai Zone of CGST (Central Goods and Services Tax) department accused WazirX of evading ₹40 crores in taxes.
WazirX had replied that there was ‘ambiguity in interpretation’ as users were paying the trading fee in WRX in the INR market on which GST could not be levied.
Maybe that’s why it updated the policy. Now users can pay trading fees only in INR in the INR market. It means GST will be levied on any transaction made in the INR markets.
Moreover, the Government of India has a negative stance towards the currency aspect of crypto. So WRX cannot replace INR to pay the fees in the INR markets as the latter is the sovereign currency of the country. The fee update also complies with this norm.
Potential Advantages and Disadvantages of the Update
This update might prove a blessing for the exchange.
The new policy could promote the accumulation of WRX among users.
On April 4, 2021, the WRX token was at its peak when it touched the price of ₹410. It hasn’t been able to replicate the same performance.
At press time it is trading for ₹64.
Earlier WRX was extensively used to pay trading fees without any accumulation threshold. The current threshold may reduce the supply in the market. As new users are onboarded by the exchange, they may look for cheaper trading options and may hold WRX. It will push its price up.
There are some people who are discontented with the new fee structure. A netizen expressed his dismay at the news and said that he might quit the platform.
It is said change is the only constant. Crypto companies are adapting to the changing Government norms so that they can comply with laws to as much degree as they can. Through repeated experimentation, both the industry and the regulators can find a common ground.
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