India has once again topped the global rankings for crypto adoption, according to Chainalysis' 2025 Global Crypto Adoption Index, surpassing every other country across retail, institutional, and DeFi activity. Yet even as India cements itself as the world's crypto hotbed, regulators are preparing to turn up the heat.
The government is set to adopt the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF), which will create a global model for sharing tax information on digital assets starting April 2027.
While the framework gives India greater oversight of offshore holdings, it does nothing to ease the country's already punishing tax regime -- a 30% flat tax on gains, a 1% TDS on every trade, and an 18% GST on exchanges.
As per reports, India will formalize its participation by signing the Multilateral Competent Authority Agreement (MCAA) in 2024. Once implemented, the framework will enable automatic exchange of data between tax authorities, allowing India's Income Tax Department to receive detailed information on residents' overseas crypto activity.
Put simply, citizens who fail to disclose offshore wallets or holdings could now be flagged by authorities abroad.
Legal experts stress, however, that this does not amount to a new tax.
Subha Chugh, an Indian lawyer in the digital asset industry, told TheStreet Roundtable:
"Many misunderstand this as a change in tax law, which it is not. India is only committing to information-sharing. Citizens were already supposed to self-report offshore holdings. Now the government will simply be able to verify it through international cooperation."
The change is being welcomed by some in the crypto industry. Punit Agarwal, founder of crypto tax software KoinX, said the OECD framework may improve trust in the long run.
"Most people want to comply -- they're just worried about clarity," Agarwal said. "Global alignment means fewer surprises and more confidence for both retail traders and institutions."
Many traders believe the measure will increase compliance headaches without addressing India's core tax challenges.
A Mumbai-based trader who requested anonymity told TheStreet Roundtable: