The Indian authorities announced last week they have launched an investigation into Binance-owned cryptocurrency exchange WazirX.
Per the statement made by the GST Mumbai East Commissionerate of Mumbai Zone:
“While investigating the business activities of cryptocurrency exchange WazirX have detected GST Evasion of Rs 40.5 Crores. The Commissionerate has also recovered Rs 49.20 Crores in Cash pertaining to goods-and-services tax evaded, interest and penalty.”
According to the authorities, the trading platform, which was acquired by Binance in November 2019, might have evaded more than $6 million.
In addition, the Indian authorities have announced they are also investigating other crypto exchanges:
“The above case is a part of the special anti-tax evasion drive, which relies on intensive data mining and data analytics, initiated by the CGST Mumbai Zone. The officers of CGST Mumbai zone are investigating business transactions related to emerging economic space like e-commerce, online gaming, Non-Fungible Tokens to identify the areas of possible tax evasion. The CGST department will cover all the cryptocurrency exchanges falling in Mumbai zone and will also intensify this drive in the coming days.”