The Income Tax Department of India has found six lakh active traders out of the 25 lakh registered in cryptocurrency exchanges in its first survey conducted to analyze cryptocurrency practices in India. The survey was conducted on nine cryptocurrency exchanges across the country.
It also reveals that a total of Rs 17,800 crore has been traded on these exchanges. The survey was conducted by the Bengaluru unit of the IT Department.
The exercise was conducted to gather information on the identity of the investors, the bank accounts used, transactions that took place, etc. The age group of those identified is between 25 to 35 years.
The survey will help the department in suggesting a tax structure for virtual currency trading in India. It is also said that unless liquidated, the wealth one holds in cryptocurrency is notional. The exercise to find the amount liquidated from these is still on. As the system is decentralized, it is difficult to trace the amount liquidated by a certain individual.
The 6 lakh active traders have provided their KYC details to the exchanges as it is mandatory for trading in India.
The number of cryptocurrency traders in India was estimated to be 50,000, five years ago.