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." 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.

To help catch up - 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. They criticized the taxing regulations for this matter by stating  that it has “been diligently paying tens of crores worth of GST every  month.”