CoinDCX Trader Slapped with 29% Tax Bill—SBI Still Blocks Withdrawal Access

Crypto traders face yet another regulatory hurdle as a CoinDCX user gets hit with a hefty 29% tax charge—only to find SBI still refusing to release funds.

The Tax Blow

Indian authorities aren’t playing nice—one trader just learned the hard way. Even after coughing up nearly a third of their gains, the path to withdrawal remains blocked.

The Banking Standoff

SBI’s refusal to process the transaction highlights the ongoing tension between traditional finance and crypto innovation. Old-school banks stay cautious—digital asset holders pay the price.

Systemic Friction

It’s the classic finance two-step: take your cut, then stall the payout. Some things never change—even in the ‘decentralized’ future.

Community reacts, confusion grows

The post drew immediate attention. Some users asked whether his entire account was frozen or only specific transfers. He clarified that only the “last transactions” were blocked. Others asked whether he had used P2P transfers or sold USDT directly. 

Initially, he said P2P, but later corrected himself, noting that he had sold directly on CoinDCX’s market and then tried to withdraw INR.

Influencers such as “Crypto with Khan” weighed in, stating, “This is serious if true”, while the trader himself confirmed that he had already raised the issue with the cyber cell.

CoinDCX steps in

Soon after, CoinDCX’s support handle replied, apologizing for the inconvenience and requesting the trader’s registered email ID for a priority review. But for many onlookers, the response raised another question: why was such an issue not addressed earlier through official support channels, before the trader had to go public?

Ads vs. regulation

The timing of the row is also striking. CoinDCX has been running high-profile campaigns in national and regional newspapers, most recently appearing on the front page of Gujarat Samachar on August 26. 

With Gautam Gambhir as brand ambassador and a pitch built around “India ka crypto coach” (Meaning: India’s crypto coach) and #LearnKaroCryptoKaro (Meaning: Learn about crypto and then engage in it), the exchange is presenting itself as a mainstream, trusted platform.

Yet, in parallel, the Indian government continues to remain silent on crypto regulation. The long-promised policy paper, first expected in June, then July, remains missing in action even as September approaches. There has been no mention of crypto in budget speeches or finance bills either.

This contradiction is hard to ignore. On one side, exchanges are allowed to flood media with crypto ads, positioning themselves as educators and coaches. On the other hand, investors find their withdrawals flagged, banks treat their transactions as suspicious, and cyber cells step in despite all taxes being collected.

The bigger question

This isn’t just one trader’s issue. It shows how unclear India’s crypto policy really is. People are paying high taxes, but still, their withdrawals get blocked and treated with suspicion. Every time this happens, trust falls further. And the bigger question stays, if even after paying taxes their money isn’t safe, is crypto in India really an investment, or just a gamble?

Also Read: Zerodha’s Kamath Flags India’s Crypto F&O Boom on Tax, Leverage