Cryptocurrency Tax Evasion Through The Dark Web: Legal Challenges For Indian Tax Authorities
- IJLLR Journal
- 28 minutes ago
- 1 min read
Akriti Yadav, Amity Law School, Amity University Uttar Pradesh, Lucknow
Dr. Mudra Singh, Assistant Professor, Amity Law School, Amity University, Uttar Pradesh, Lucknow
ABSTRACT
The rapid growth of cryptocurrencies has fundamentally altered the global financial ecosystem. While digital currencies provide innovative methods for conducting decentralised and efficient financial transactions, they have also created new opportunities for financial misconduct. One of the most concerning developments is the use of cryptocurrencies for tax evasion through the dark web. The anonymity and decentralised nature of cryptocurrencies allow individuals to conduct financial transactions without relying on traditional financial institutions, making it significantly more difficult for governments to monitor and regulate such activities. In India, where cryptocurrency regulation is still evolving, tax authorities face several legal and technological challenges in identifying, tracing, and prosecuting cases of tax evasion linked to the dark web.
This paper examines the relationship between cryptocurrency transactions and dark web marketplaces, focusing specifically on the legal challenges faced by Indian tax authorities in addressing tax evasion. It analyses the current regulatory framework governing cryptocurrencies in India, including the taxes on provisions introduced under the Finance Act, 2022. the paper further explores enforcement difficulties such as anonymity, lack of international cooperation, limited technical experience, and regulatory ambiguity. Finally, the paper presents recommendations for strengthening India’s regulatory and enforcement mechanisms through capacity building, international collaboration, adaptive legislation, and increased public awareness.
Keywords: Cryptocurrency, Tax Evasion, Dark Web, Blockchain, Virtual Digital Assets, Finance Act 2022, Anonymity, Money Laundering, Indian Tax Authorities, Regulatory Framework
