More than $12.6 million has been confiscated from 11 crypto exchanges.
The authorities seemed to be concerned about the rapid pace of acceptance.
The overall crypto market appeared optimistic on the most prominent cryptocurrencies like bitcoin, ether, and other altcoins, with a global market cap of $2.14T, showing no signs of slowing down. However, authorities and governments in several countries remained skeptical about the use of virtual currency. Another tax evasion case has been discovered by prominent Indian exchanges, which has sparked a divided response from the sector. More than $12.6 million has been confiscated from 11 crypto exchanges in India on tax evasion charges.
Stringent Tax Laws
Directorate General of GST Intelligence (DGGI), India’s tax-collecting agency, has already seized about $11.0 million in taxes and another $145,000 in penalties. However, Pankaj Chaudhary, India’s Minister of State for Finance, reportedly said that the sum was closer to $12.6 million in January of this year.
Early this year, as crypto usage grew in India, the authorities seemed to be concerned about the rapid pace of acceptance. As a result, it was verified by DGGI in January 2022 that they had seized money from six cryptocurrency exchanges. WazirX, CoinDCX, BuyUCoin, and Unocoin were among the names on the list.
When Chaudhary updated the tally on Monday, there was an almost two-fold increase in the number of transactions implicated. This is because India’s tax authorities carried out extensive investigations into WazirX, CoinSwitch Kuber, CoinDCX and BuyUCoin earlier this year.
Cryptocurrency markets in India have been under increasing government control. The authorities have not only targeted crypto exchanges but have also implemented strict new tax laws for cryptocurrencies. Indian Parliament member Ritesh Pandey also expressed concerns about the 1% tax on crypto transactions. However, as the market gains speed, rules may be overshadowed in the short run.