India’s federal tax authority is investigating bitcoin exchanges to try and find a way to tax transactions, an official said on Wednesday, even as its central bank has warned against dealing in virtual currencies.
Thousands of transactions are taking place every day in unregulated cryptocurrency exchanges and the Income Tax Department has launched surveys in the cities of Delhi, Mumbai, Pune, Bengaluru and Hyderabad, spokeswoman Surbhi Ahluwalia said.
“We are looking at collecting information about modus-operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax,” Ahluwalia told Reuters.
Last week, the Reserve Bank of India (RBI) said it was concerned about bitcoin, just days after the cryptocurrency hit a record high of just under $11,800, stocking fears that a rapidly swelling bubble could burst.
Own risk
The RBI had previously said those trading in virtual currencies were doing so at their own risk, given that the central bank had not given a license or authorization for any company to deal in such cryptocurrencies.
The tax official declined to comment on the central bank’s concerns, saying the tax department was looking only into the tax implications.
The government has set up a panel to decide on India’s stand on cryptocurrency.
This year, the government told parliament that the use of virtual currencies like bitcoins was not authorized by the RBI and could result in breach of anti-money laundering laws.
Bitcoin hit another all-time peak on Tuesday, two days after the launch of the first ever bitcoin futures on a US exchange as investors grew optimistic that the $20,000-mark is within reach.
-
Bitcoin makes muted stock exchange debut at $15,000
Cryptocurrency Bitcoin made its debut on a major bourse Sunday, opening at $15,000 per unit at the Chicago board options exchange.Around 23:20 GMT, ... Financial Markets -
Bitcoin surges above $15,000 after climbing $2,000 in 12 hours
Bitcoin rocketed above $15,000 for the first time on Thursday, after adding more than $2,000 to its price in fewer than 12 hours. Bitcoin, the ... Technology -
Bitcoin miner NiceHash reports hack, theft of its ‘wallet’
The bitcoin miner NiceHash says it is investigating a security breach and the theft of the contents of the NiceHash “bitcoin wallet.”The ... Technology -
US agency gives green light to bitcoin on major exchanges
A US regulator cleared the way Friday for bitcoin futures to trade on major exchanges, but warned investors the digital currency is prone to elevated ... Technology