India has introduced a new reporting framework that requires cryptocurrency exchanges and other digital asset intermediaries to collect tax residency and identification details from users. The move brings the country’s approach closer to the OECD’s Crypto Asset Reporting Framework, which is designed to improve tax transparency in crypto markets.
Under the updated rules, covered platforms will also need to share transaction information with tax authorities on an annual basis. That means exchanges operating in India will face broader compliance duties tied not only to trading records, but also to customer tax-related data.
The Central Board of Direct Taxes is overseeing the framework, which signals a tighter reporting regime for the digital asset sector. By aligning with an international model, India appears to be preparing for more standardized tracking of crypto activity, including cases where users may have tax links across borders.
For the crypto industry, the change points to stronger oversight and more detailed user verification requirements. For regulators, it creates a clearer system for gathering information on digital asset transactions and linking them to taxpayers through a structured annual reporting process.
