Indian officials are not pleased with non-taxed coin transactions

Since the early days of cryptocurrency, its enthusiasts liked to remind everyone about how cryptocurrency transactions are not monitored, regulated or taxed by the governments of the world, resulting in at least part realization of anarcho-capitalists’ dreams. But as Bitcoin grew in price, the attention of the said governments started to rise too, and they realized that the narrative of the fanbase is actually far from being an exaggeration.

This is why, for example, Russian officials recently told they might prohibit uncontrolled development of new kinds of cryptocurrency to prevent more tax evasion, and the government of India is, according to the multiple sources of the press, aiming to tax cryptocurrency transactions. They all cite the Income Tax Department spokesperson who made it known to the public that the government currently conducts surveys to know more about how coin transactions are made and want to develop tax legislature based on these surveys.

The approach chosen by the Income Tax Department closely resembles the type of regulation the Russian Central Bank called “active supervision”.