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Indian tax authorities conducted a field survey of nine bitcoin exchanges

On Wednesday, the Indian Income Tax Division (also known as the IT Department) conducted a field survey of nine Bitcoin exchanges in the country .

Government officials told reporters that under the command of a Bangalore investigation agency, several groups of agents from the taxation department investigated the venues in Delhi, Bangalore, Hyderabad, Kochi and Gurgaon.

According to this official, this action is based on the Indian Income Tax Act 133A, which seeks to "gather relevant information, establish investor and trader status files, record the transactions they involve, counterparties' identities and related bank accounts, etc." .

It is reported that these officers have a wealth of financial data knowledge, very understanding of the exchange operation. Reported that this is the first time the Indian government took a major action on domestic exchanges, the future will be more related activities.

Regulatory framework under development

As can be seen from the Indian media coverage, the authorities are setting regulatory and legal frameworks - central banks and other government agencies are trying to cope with the challenges they see as a bitcoin transaction.

In November, Indian Finance Minister Arun Jaitley said :

We are studying (the panel's) proposal. The government's position is clear, and we do not currently recognize it as legal.
Before the issuance of this view, the Supreme People's Court issued a notice to the central bank and the relevant financial departments in the hope of expediting the formulation of a bitcoin regulatory framework.

The local bitcoin community is concerned that in the future the government will make it illegal to encrypt currency transactions. However, the government may also focus its regulation on the ICOs involved in Ponzi schemes because such activities have been getting more and more heated in the near future.

Bitcoin transactions in India have risen sharply recently, with the country's exchanges Zebpay, Coinsecure, Unocoin and Bitxoxo all seeing a huge increase in new users and a high transaction volume. Many "big deal" investors are beginning to enter the bitcoin market, which may be why the tax office to take such action.