India’s Biggest Cryptocurrency Exchanges Raided After Tax Evasion Was Detected At WazirX

Yesterday, India’s tax authorities commenced a large-scale search of the country’s biggest cryptocurrency service providers, like CoinSwitch Kuber, CoinDCX, BuyUCoin and Unocoin, after a massive tax evasion of upto Rs. 400 million (or $6 million) was discovered at WazirX. Several sources report that the crackdown started after a Mumbai tax authority recovered Rs 492 million in cash from the firm, which included interest and penalty.

On December 30th, when this information was tweeted out, the tax authorities clarified that “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.” They also warned that it “will cover all the cryptocurrency exchanges falling in Mumbai zone and will also intensify this drive in the coming days,” as covered by CoinDesk.

And as per sources so far, Rs. 700 million (or about $9.4 million) in tax evasion funds has been found by Mumbai CGST and DGGI thereafter.

WazirX And Other Crypto Exchanges

Cryptocurrency service providers provide a platform to exchange money, like dollars or euros, for virtual financial assets (cryptos and NFTs) like Bitcoin, Ethereum, Dogecoin, etc. They tend to offer their customers a custodial wallet for storing such currencies as well. WazirX is a Binance-owned crypto exchange platform, which is also among the most famous crypto service providers in India.

WazirX criticized the taxing regulations for this matter by stating that it has “been diligently paying tens of crores worth of GST every month.” They also elaborated on this by saying, “There was an ambiguity in the interpretation of one of the components which led to a different calculation of GST paid. However, we voluntarily paid additional GST in order to be cooperative and compliant. There was and is no intention to evade tax. That being said, we strongly believe that regulatory clarity is the need of the hour for the Indian crypto industry.”

Notwithstanding all the confusion surrounding the country’s tax regulation policy in the crypto sphere, the DGGI did recover another Rs 30 crore (approximately $4 million) in funds after searching through the offices of about six cryptocurrency service providers this Saturday.

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Sneh Dokania is an Economics major student with an inquisitive disposition seeking to articulate facts, information and news stories in a candid manner on Clout News.

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