Crackdown on cryptocurrency exchanges across country; huge tax evasion detected

The Directorate General of GST Intelligence (DGGI) on Saturday detected huge tax evasion after carrying out searches at some major cryptocurrency service providers across the country.

DGGI authorities also conducted a search at the premises linked to crypto exchange service provider WazirX, a day after the company was fined Rs 49.20 crore for eluding legal taxes, Indiatoday reported.

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The GST Mumbai (Ease Commissionerate Zone), while probing the business activities of WazirX, identified GST evasion of Rs 40.5 crore.

The agency, in a statement, said they have recovered Rs 49.20 crore in cash from the company which comprises interest and penalty.

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The crackdown on WazirX came months after the government decided to bring in a law to regulate cryptocurrency, which is to date unregulated in India with rising investment in this form of currency.

Some of the well-known cryptocurrencies are Bitcoin and Ethereum. The prices of these virtual currencies have incidentally crashed after the government listed a bill to regulate cryptocurrency in the country.