Indian tax investigators raid the Bitcoin exchange

nRunaway Comment: Bitcoin transaction prices soared, causing government regulatory attention. In addition to speeding up the legislative process, the Indian tax department conducted a search of bitcoin exchanges under section 133A of the Indian Income Tax Act, “Relevant evidence used to collect evidence, identify investors and traders, their transactions, their counterparties, Bank account, etc. ” And there will be further action.n
nTranslation: Annie_Xun
On Wednesday morning, the Indian income tax department conducted a site search of nine domestic bitcoin exchanges.n

Government officials told the Indian News Agency PTI that in accordance with the requirements of the Bangalore investigation agency, a number of tax department investigation teams investigated the places of business in Delhi, Bangalore, Hyderabad, Cochin and Gurugram.n
According to interviewed officials, the move was based on Article 133A of the Indian Income Tax Act, “Collecting Evidence, Confirming Investors and Traders, Their Transactions, Their Counterparties, Their Relevant Bank Accounts, etc.” .n
The survey team carries a variety of financial data and exchange activity information. Reported that the operation is the first large-scale action for the domestic exchange, after which there will be more action.n

According to the Indian press, the government is in the process of setting regulatory and legal frameworks and attempting to address the challenge of Bitcoin transactions, led by the central bank, in cooperation with other government agencies.n
In November, Arun Jaitley, Minister of Finance of India, said: “Now we are drafting the proposal and the government has a clear position. At present, we do not recognize it as legal currency.” Prior to the High Court of India to the central bank and the relevant financial sector issued a circular to speed up the introduction of bitcoin regulatory mechanism.n
The local Bitcoin community fears that the upcoming regulation will define these transactions as illegitimate. However, there are signs that the government may focus on cracking down on the ICO Ponzi scheme as these have been hotter recently.n
Bitcoin trading in India recently rose, some large domestic exchanges Zebpay, Coinsecure, Unocoin, Bitxoxo reported a large number of new users into the huge volume of transactions. New interest in bitcoin from “high-net-worth” individuals could prompt tax authorities to signal these steps.n

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