Indian crypto exchanges searched after alleged tax evasion

The move comes as a result of what they deemed tax evasion of approximately USD 6 million was detected at cryptocurrency exchange WazirX. The case is a part of the special anti-tax evasion drive, which relies on intensive data mining and data analytics, initiated by the CGST Mumbai Zone.

The agency announced that it will cover all the cryptocurrency exchanges falling in Mumbai zone and will intensify this drive in the coming days. The Binance-owned WazirX blamed a lack of clarity in regulation for the matter, saying it has been diligently paying tens of crores worth of GST every month.

Following the WazirX search, Mumbai’s Tax authority, along with DGGI, the national law enforcement agency under the Ministry of Finance responsible for fighting tax evasion in India, searched the offices of about six cryptocurrency service providers. The DGGI recovered approximately USD 4 million worth of funds that resulted from alleged tax evasion during the crackdown on the cryptocurrency exchanges.