India is moving toward a much more transparent and regulated crypto ecosystem, particularly for cross-border cryptocurrency transactions. Recent government decisions, reflected in the Union Budget 2026 and global tax cooperation frameworks, signal a significant shift in how crypto is monitored and reported.

The Indian government has announced that it will begin sharing and receiving information on cross-border cryptocurrency transactions with other countries from April 1, 2027. This data exchange will be carried out under the Crypto-Asset Reporting Framework (CARF) — a global reporting standard developed by the Organisation for Economic Co-operation and Development (OECD).

In practical terms, this means that crypto platforms and intermediaries will report detailed transaction data to Indian tax authorities, and that information will then be automatically shared with other countries where crypto users reside. Likewise, India will receive similar data from abroad.

CARF is a global data-sharing system that allows tax authorities in participating countries to automatically exchange information about crypto transactions across borders — similar to how bank accounts and financial investments are reported under existing international tax rules.

This global cooperation aims to:

• Reduce tax evasion by tracking offshore crypto activity

• Increase transparency in the rapidly growing crypto market

• Align crypto-asset reporting with global financial standards

More than 60 countries are expected to implement CARF by the end of 2027-28, reflecting a broad international effort to regulate digital assets.

To support the global reporting standards and ensure compliance before India begins data exchange in 2027, the Union Budget 2026 introduced stricter rules and penalties for crypto reporting:

• 📍 From April 1, 2026, entities that fail to file required crypto transaction statements will face a penalty of ₹200 per day.

• 📍 If a platform furnishes incorrect details or fails to correct mistakes, a flat penalty of ₹50,000 may be imposed.

The aim is not only to enforce discipline in reporting but also to bring crypto transactions within the formal Income-Tax compliance framework in India.

India’s tax authorities have repeatedly pointed out that a large share of Indian crypto trading happens on foreign platforms, making oversight and taxation difficult. The new reporting and data exchange system is intended to curb this trend and ensure proper tax compliance.

As international crypto reporting standards evolve, India’s participation in CARF aligns it with global peer nations. This cooperation allows countries to:

• Detect cross-border tax evasion

• Share information automatically

• Build greater confidence in crypto regulatory frameworks

By linking reporting penalties with the CARF timeline, India is signalling to crypto exchanges, marketplaces, and intermediaries that accurate and timely reporting is now a core regulatory requirement.

For investors and crypto platforms, the changes imply:

• Greater transparency: Overseas crypto activity may now be visible to Indian tax authorities if it involves Indian residents.

• Increased compliance requirements: Exchanges and intermediaries will need robust reporting systems by April 2026.

• Potential operational changes: Platforms operating in India may have to invest in data capture and reporting infrastructure to meet new norms.

India’s decision to join the global crypto transaction reporting system through CARF marks a major step toward structured and transparent regulation of digital assets. By tying domestic reporting rules to international data exchange timelines, India wants to ensure its tax system adequately covers the fast-expanding crypto economy while aligning with global tax-transparency efforts.

India is moving toward a much more transparent and regulated crypto ecosystem, particularly for cross-border cryptocurrency transactions. Recent government decisions, reflected in the Union Budget 2026 and global tax cooperation frameworks, signal a significant shift in how crypto is monitored and reported.

The Indian government has announced that it will begin sharing and receiving information on cross-border cryptocurrency transactions with other countries from April 1, 2027. This data exchange will be carried out under the Crypto-Asset Reporting Framework (CARF) — a global reporting standard developed by the Organisation for Economic Co-operation and Development (OECD).

In practical terms, this means that crypto platforms and intermediaries will report detailed transaction data to Indian tax authorities, and that information will then be automatically shared with other countries where crypto users reside. Likewise, India will receive similar data from abroad.

CARF is a global data-sharing system that allows tax authorities in participating countries to automatically exchange information about crypto transactions across borders — similar to how bank accounts and financial investments are reported under existing international tax rules.

This global cooperation aims to:

• Reduce tax evasion by tracking offshore crypto activity

• Increase transparency in the rapidly growing crypto market

• Align crypto-asset reporting with global financial standards

More than 60 countries are expected to implement CARF by the end of 2027-28, reflecting a broad international effort to regulate digital assets.

To support the global reporting standards and ensure compliance before India begins data exchange in 2027, the Union Budget 2026 introduced stricter rules and penalties for crypto reporting:

• 📍 From April 1, 2026, entities that fail to file required crypto transaction statements will face a penalty of ₹200 per day.

• 📍 If a platform furnishes incorrect details or fails to correct mistakes, a flat penalty of ₹50,000 may be imposed.

The aim is not only to enforce discipline in reporting but also to bring crypto transactions within the formal Income-Tax compliance framework in India.

India’s tax authorities have repeatedly pointed out that a large share of Indian crypto trading happens on foreign platforms, making oversight and taxation difficult. The new reporting and data exchange system is intended to curb this trend and ensure proper tax compliance.

As international crypto reporting standards evolve, India’s participation in CARF aligns it with global peer nations. This cooperation allows countries to:

• Detect cross-border tax evasion

• Share information automatically

• Build greater confidence in crypto regulatory frameworks

By linking reporting penalties with the CARF timeline, India is signalling to crypto exchanges, marketplaces, and intermediaries that accurate and timely reporting is now a core regulatory requirement.

For investors and crypto platforms, the changes imply:

• Greater transparency: Overseas crypto activity may now be visible to Indian tax authorities if it involves Indian residents.

• Increased compliance requirements: Exchanges and intermediaries will need robust reporting systems by April 2026.

• Potential operational changes: Platforms operating in India may have to invest in data capture and reporting infrastructure to meet new norms.

India’s decision to join the global crypto transaction reporting system through CARF marks a major step toward structured and transparent regulation of digital assets. By tying domestic reporting rules to international data exchange timelines, India wants to ensure its tax system adequately covers the fast-expanding crypto economy while aligning with global tax-transparency efforts.