The cryptocurrency future seems darker than it appears in India. The cryptocurrency law is already implemented with a 30% tax on capital gains from virtual digital assets and 1% TDS on each transaction.
Now another big news has come from the Indian crypto industry. The major crypto exchanges including WazirX, CoinDCX, and Coinswitch Kuber have served notices by the ED (Enforcement Directorate). These notices have been issued in case of money laundering and foreign exchange violations.
According to a news published on the CNBCTV18 website, a senior executive of a crypto exchange said, “Exchanges have been summoned regularly for the last two years. We are asked for customer data, and transaction details and usually called to the office to explain the data later.”
The executives of these exchanges also said, apart from ED (Enforcement Directorate) and FEMA (Foreign Exchange Management Act) other agencies are also probing various details.
What do The Spokespersons of These Exchanges Say?
CoinDCX exchange’s spokesperson said, “CoinDCX as a company stays committed to complying with the law of the land and will cooperate with regulators at all times. As per our understanding, the ED has sent notices to major exchanges in India seeking information and data on how platforms work. As required, we have shared all necessary information to the satisfaction of the department and no subsequent action is pending at our end.”
A spokesperson of Coinswitch Kuber said in his statement to Moneycontrol, “We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potential and we continuously engage with all stakeholders.”
WazirX spokesperson said, “The matter is pending before the Karnataka High Court where the company and its director filed a writ petition and the court has passed an interim order. We have complied with the order. The matter is sub judice.”
These types of news can badly affect the crypto industry especially when the whole crypto market is declining due to higher taxes and TDS. Like Casino, Gambling the government has put digital assets in the highest tax band.