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apart from collecting all the money from these exchanges.

they will also gather all the information of the traders.

and then they will hunt them next for tax evasion and what not.

so, the people who have traded on centralized exchanges with their kyc and hasn't paid their tax.

better get on it right away!

That is the biggest risk of using centralized exchanges in a country where cryptocurrencies are not defined by law yet. But whoever has invested through these exchanges, they are not in huge risk. if you have made few thousands in profit, that should be all fine. Income Tax department doesn't have time to go behind 7 million people. But if someone has done millions in profit and the data is not shown in their tax return, they are in danger! And that's how it should be! No one should mess with the government.

Also I don't understand why GST department had initiated this raid! Where cryptocurrency is not defined under any law, how can a transaction in crypto can attract GST! That's very unfortunate to be honest!