The source says, citing the tax agency, that the tax notice does not concern simply purchasing or holding crypto. However, if taxpayers profited, then they have to declare those gains. That is, for example, in the case of exchanging crypto for other crypto or fiat currencies, or buying goods. Interestingly though, according to the source, the tax agency sent out many more letters last year, targeting 66,000 crypto holders.

Cryptocurrency regulations vary from country to country. Moreover, with the popularity of crypto growing, more countries might be adopting stricter regulations to prevent tax evasion or money laundering activities. In March, the tax agency in South Korea caught over 2,400 taxpayers who were evading paying taxes by hiding their income in crypto. In addition, in Canada, to prevent tax evasion, the Canadian Revenue Agency (CRA) last month requested client data of crypto trading platform Coinsquare.

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Regulations on crypto vary from country to country and authorities take measures against those who evade paying tax. In the U.S., Internal Revenue Service (IRS), for instance, this month launched a program under the name “Operation Hidden Treasure.” It is designed to keep track of the crypto income of the taxpayers who did not report it on the tax form.

In India, the government made it compulsory for companies to disclose crypto investments or trading activities, Business Today reports. According to the source, experts expect taxation regulations to follow. The Indian government has been discussing the introduction of a law that would ban all private cryptocurrencies. As a result, this law could make it illegal to hold or trade crypto.

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