The Israel Tax Authority (ITA) has taken strong measures to curb unreported gains made from crypto assets and trading. Notice had been sent by the authority to all those who are under suspension of disclosed earnings through crypto. It also added pay 25% in capital gains tax every time they disposed of their holdings and 17% value-added tax for exchanges.
The leading cryptocurrency exchanges were raided by police officials and tax agencies in South Korea concerned over tax evasion. An official from the Coinone exchange said, “they think what we do is gambling”. Bithumb exchange was also asked to produce paperwork. The financial authorities also claimed that inspection on six local banks that transact digital currencies was carried out.
The Income Tax Department conducted a survey in accord to Section 133A of Indian Income Tax Act and gathered information about the digital currency users, transactions and other data. The IT officials went along with this widespread operation over suspicions of tax evasion by users rolled out. Arun Jaitley, Finance Minister of India, stated that bitcoins are not recognized as legal tenders and the government is looking forward to receive “recommendations” proposed to regulate cryptocurrency market.