The Income Tax Department in India is set to gain digital surveillance powers that would allow them to monitor individuals' social media accounts and emails in order to combat crypto fraud. This move is part of the Income Tax Bill 2025, which aims to improve the detection of tax evasion and undisclosed assets in the country's growing digital economy. Under the bill, tax officials would have the authority to access cryptocurrency wallets, exchanges, and other digital spaces where assets may be stored or transacted. However, there are concerns about privacy and potential misuse of these powers. Additionally, India is tightening its grip on cryptocurrency taxation, with new taxes on undisclosed gains and new reporting obligations for crypto transactions.
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