India Tracks Evolving Crypto Trading to Tighten Tax Oversight
India is engaging with cryptocurrency exchanges to better understand changing trading activity as it seeks to ensure tax compliance amid the rise of new crypto products, a senior tax official said. While cryptocurrencies are not formally regulated in the country, global platforms such as Binance, CoinDCX, Coinbase and Zebpay continue to operate in India after registering with a government agency.
The government has imposed steep taxes on gains from cryptocurrencies, and the central bank has repeatedly warned about risks associated with crypto trading. Ravi Agrawal, chairman of the Central Board of Direct Taxes, said transaction patterns are evolving rapidly with technology, making it necessary for authorities to closely study newer forms of crypto activity, including derivatives, which are currently not taxed.
India remains cautious about formulating broader crypto policies, with officials signalling a careful approach to sensitive transactions. While global acceptance of cryptocurrencies has increased — particularly after U.S. President Donald Trump took office in January 2025 — New Delhi continues to favour partial oversight rather than full regulation, citing concerns over speculative trading and potential systemic risks.
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