India's Crypto Crackdown: Strengthening Reporting and Compliance
In response to growing tax evasion risks in the digital asset space, the Indian government has introduced stricter measures in the 2026-27 budget to combat fraudulent and incomplete crypto transaction reporting.
New regulations require all crypto exchanges, wallet providers, and intermediaries to submit accurate and comprehensive transaction data to the government, ensuring transparency and legal compliance. Failure to comply will result in significant financial penalties.
Higher Penalties to Deter Non-Compliance
Under the proposed amendments to the Income Tax Act, entities that fail to submit reports on time will face a fine of up to 200 Indian rupees per day. Those submitting false or incomplete information may be fined up to 50,000 rupees per violation.
This regulatory update not only raises the cost of non-compliance but also marks a major step toward integrating digital assets into India’s formal financial system.
- All platforms must submit full transaction records as required by law
- Fraudulent reporting will incur fixed fines
- The new rules will take effect on April 1, 2026
Compliance as a Competitive Advantage
While crypto adoption continues to grow in India, regulatory gaps have been exploited for illicit financial activity. With this reform, the government aims to foster a more transparent and sustainable digital asset ecosystem while improving tax collection efficiency.