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In India, cryptocurrency exchanges face penalties for inaccurate transaction reporting., 2026/02/10 17:17:43
Indian officials have begun formulating proposals that would impose fines on cryptocurrency exchanges for providing inaccurate information regarding crypto transactions. These changes are being developed in response to the International Tax Standard (CARF) proposed by the Organisation for Economic Co-operation and Development (OECD).
According to Indian media citing local officials, starting in April 2027, the government will commence the exchange of data on crypto transactions with other OECD members. Currently, the government is aligning its cryptocurrency regulations with this international reporting framework. Indian authorities plan to release their proposals in April 2026.
Platforms that fail to report client transaction data may incur a daily fine of 200 rupees (approximately $2.2), officials indicate. A penalty of 50,000 rupees ($552) is proposed for providing inaccurate information to the Indian Revenue Service.
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“The objective is to ensure our reporting systems meet international standards before India begins exchanging information on crypto transactions with other nations,” explained an anonymous government representative regarding the urgent need for regulatory changes.
Since 2022, India has implemented a fixed tax of 30% on profits from virtual assets. Legally operating exchanges in India automatically deduct a 1% tax from traders. In accordance with CARF requirements, even international cryptocurrency exchanges will be obligated to report transactions involving Indian citizens to tax authorities. Consequently, Indian traders will need to disclose their transaction data in tax returns.
Earlier this year, the Financial Intelligence Unit of India (FIU) pledged to tighten user registration rules and the Know Your Customer (KYC) process on crypto platforms to comply with anti-money laundering (AML) regulations.
