As the war between investors of cryptocurrency and worldwide regulators continues, it has been reported that India\'s government has given tax notices to traders and investors of digital currencies following an official survey.

The results from the nationwide questionnaire found that citizens within the country had carried out over $3.5bn worth of digital currency trades over the preceding 17 months. India\'s government also reportedly gathered statistics from nine exchanges in India, resulting in tax notices being issued to thousands of people. It\'s alleged that India plans to tax capital gains, and has been requesting further information regarding cryptocurrencies – such as where specific funds are held.

This latest news comes as officials in India believe that traders of digital currency had been avoiding taxes. In an attempt to combat such activity, the government collected the data last month with the aim of identifying users, as well as seeking any evidence of money laundering.

Bitcoin and other cryptocurrencies may have been criticised in the past, but India\'s official opinion is still not certain, even though an Indian Supreme Court note and petitions have frequently asked for clarification regarding the regulations. Despite the recent tax notices, the country has not released any trading regulations.