Tax investigators in India, Raid Bitcoin Exchanges

Nishanth Shetty

Nishanth Shetty

December 14, 2017 10:36 am

Tax investigators in India, Raid Bitcoin Exchanges | Coindelite News
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Bitcoin News

Investigators from the Income Tax Department of India has conducted onsite searches at the offices of the country’s top nine bitcoin exchanges on Wednesday morning.

Government officers told the Indian news agency PTI that multiple teams of detectives from the tax department, under the order of the Bengaluru investigation wing, surveyed the trading venues in Delhi, Bengaluru, Hyderabad, Kochi, and Gurugram.

Officers described this action was taken under section 133A of the Indian Income Tax Act for:

“Gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counter-parties, related bank accounts used, among others,”

The teams of officers have to be prepared for multiple financial data and inputs regarding the workings of the exchanges. Reports said the first big action against the exchanges operating in the country, saying that more is to come.

Regulations are under work

Reports from India indicate that the authorities are preparing a regulatory and legal framework to reflect and deal with the challenges posed by the central bank in cooperation with other government agencies.

In November, India’s Finance Minister Arun Jaitley said, “Recommendations are working and the Government’s position is clear and now we do not recognize this as a legal currency.” The Supreme Court of India has instructed the country’s central bank and related finance ministries to bring the regulatory system with regard to Bitcoin.


In the local Bitcoin community, these forthcoming controls define business activities as illegal. Anyhow, there are indications that they can focus on the ICO Ponzi projects, as they have received more heat lately.

Recently large-scale business volumes have been reported with Zebpay, Coinsecure, Unocoin and Bitxaxo, the country’s largest exchanges. Some interests in bitcoin come from ‘high net worth’ individuals, which push tax authorities to send a signal to this latest action.

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