India will begin sharing cross-border cryptocurrency transaction data from April 1, 2027, under the OECD’s Crypto-Asset Reporting Framework (CARF). The move aims to tighten oversight of overseas crypto trading by Indian users, ensure tax compliance, and align India with global standards for automatic exchange of financial information.
India is set to join the OECD-led Crypto-Asset Reporting Framework (CARF), marking a significant step in regulating cryptocurrency transactions. Starting April 2027, the government will exchange cross-border crypto transaction data with other countries, enhancing transparency and curbing tax evasion.
Key Highlights:
-
Implementation Date: April 1, 2027.
-
Global Framework: India will adopt CARF, designed by the Organisation for Economic Co-operation and Development (OECD).
-
Objective: To automatically share crypto transaction details with international tax authorities.
-
Domestic Concerns: A large share of Indian crypto trading occurs on foreign platforms, raising risks of tax leakage.
-
Compliance Measures: Union Budget 2026 proposes stricter penalties for crypto exchanges failing to report transactions accurately.
-
Preparatory Work: Technical systems and reporting mechanisms are being developed to ensure smooth integration.
Analysis:
This initiative reflects India’s commitment to global financial transparency and responsible crypto regulation. By aligning with CARF, India strengthens its ability to monitor overseas crypto activity, safeguard revenue, and build investor confidence in the digital asset ecosystem.
Sources: The Economic Times, Business Standard, 99Bitcoins