Income tax department cracks down on Bitcoin exchanges.

As the most popular cryptocurrency touches new highs, the income tax department on Wednesday began its crackdown on Bitcoin exchanges. Tax sleuths conducted 'surveys' at as many as nine Bitcoin exchanges in the country. In the nationwide investigation, the I-T department 'surveys' are being done to gather evidence for establishing identity of investors and traders, transactions undertaken by them.

Business Today photographer Nilotpal Baruah was at one of the bitcoin exchanges, Coinsecure, in Bangalore when the raid began. The investigation team took control of computers and servers and detained all staff, including the founder and CTO Benson Samuel.

Earlier, reports suggested that tax evaders may be parking illicit money in Bitcoin. The income tax officials have sought information on the records maintained by the exchanges to uncover the money trail. The monthly trade of bitcoins in India is estimated to be between Rs 5,000 crore - 10,000 crore. An average of 50,000 people register daily on Bitcoin exchanges. The virtual currency has seen a whopping 1500 per cent surge in its value in less than a year.