India, Jan. 9 -- Following Reserve Bank of India's (RBI) suit, the income tax (I-T) department has now also reportedly raised concerns over risks associated with virtual digital assets (VDAs) like cryptocurrencies.

A source told Times of India that the I-T department, in a presentation before the Parliamentary standing committee on finance, flagged concerns that VDAs could be used to move funds through a system without regulated financial intermediaries.

Tax officials reportedly cited the anonymous, border-less and near-instant nature of cryptos as the cause for such concern.

As per the report, the department also informed the committee that offshore exchanges, private wallets and decentralised platforms made it "very difficult" for th...