While the plummeting trading volumes have already put Indian exchanges in a bad state, the country’s authorities made another move. India crypto space is under strict vigilance from authorities. The country’s Directorate of Enforcement (ED) is moving fast ahead in its probe into any possible foreign exchange crimes.
New Taxation On Crypto Badly Affects India Crypto
After the Indian government imposed a 1% tax on all transactions, trading volumes have significantly dropped on Indian exchanges. Indian crypto investors are already subjected to a high tax of 30% on profits. In a latest, the ED asked cryptocurrency companies for more information and documents as part of the investigation.
According to a report from The Economic Times, the ED sought more information on the transactions from several top Indian crypto companies. The Foreign Exchange Management Act (FEMA) rules allow the country’s authorities to seek the information. India’s FEMA rules provides for maintenance of foreign exchange market in the country.
The ED is reportedly examining all details of the offshore transactions made by the Indian exchanges. The Indian authorities are assessing as to how much of domestic funds went outside of the country. For that purpose, transaction histories and the companies’ relationship with foreign exchanges is under the radar.
The report quotes an ED official as saying,