Tens of thousands of Indian cryptocurrency investors have received official notices from tax authorities, after it became apparent that some crypto investments did not form part of the country\'s tax returns. A survey carried out by the Indian government found that over a period of 17 months, transactions worth $3.5 billion were completed on nine exchanges.

The notice required that investors provide full details of the value of any cryptocurrency holdings, and the source of the funds which were used to purchase them. The introduction of know-your-customer anti-fraud legislation has made it much easier for Indian tax authorities to track down those who have invested in the cryptocurrency market.

However, while it is estimated that there are currently 2.5 million people registered to trade on Indian cryptocurrency exchanges, only 600,000 of these people have provided the personal information required to meet know-your-customer legislation.

The Indian cryptocurrency boom is primarily thought to be fuelled by young people in the 25-35 age group, who are tech-savvy and have a good understanding of the cryptocurrency markets. Following the massive price increases which bitcoin experienced in late 2017, many young people see investing in cryptocurrencies as a way to get rich quick.