Crypto investments in the country have surged to $40 billion from $200 million a year ago.
It may be difficult for the government to impose the levy in the absence of a regulatory framework for the treatment of crypto assets.
IBBIC's new system will verify data for invoices on goods and services tax, eliminate paperwork and significantly reduce transaction times.
WazirX denied receiving any show cause notice from the agency.
It's the latest twist in India's oft-changing posture toward fast-growing crypto markets.
There is a bill pending in parliament, which seeks to ban private cryptocurrencies.
RBI's circular comes as Indian banks warn customers against using their services for crypto trading.
HDFC noted a link between bitcoin prices and searches on Google.
Customers of BankDhofar will be able to use its mobile app to send real-time payments to IndusInd accounts.
The news comes amid the view that proposals for a blanket ban are outdated.
Regulatory uncertainty has held back India's 4.2 million-strong developer base from embracing blockchain tech, says our columnist.
Indian crypto traders are receiving account closure notes from banks, and exchanges see issues with bank transfers
The new listing comes a day after Ethereum's founder donated $1 billion in SHIB to India Covid Relief Fund.
India’s central bank has been unofficially asking banks why they are dealing with crypto businesses.
The agency told banks they should consult their legal and compliance departments on whether they should block transactions on their own systems.