New Delhi, June 14 -- The income tax department is investigating tax evasion and money laundering of unaccounted income by high-risk persons through investments in virtual digital assets (VDAs), including cryptocurrencies, officials aware of the matter said on Friday. "Such entities and individuals, which are engaged in VDA transactions and have failed to comply with the Income-tax Act have been identified for verification," he said on condition of anonymity. In India crypto assets are not recognised as legal tender. Cryptocurrencies are unregulated in the country and the government is in the process of bringing out a discussion paper on this subject with options ranging from regulation to a complete ban, a second official said. "Although income from VDAs such as cryptocurrencies are taxable, it must not be construed as government's regulatory approval to them," he said. Union Budget on February 1, 2022 levied a 30% tax on the income from virtual digital assets, including cryptocurrencies, and subjected such transactions to 1% tax deducted at source (TDS) to help track their use. VDA service providers were made reporting entities from March 7, 2023....