$19B in India's Crypto Activity Faces Tax Scrutiny

India's crypto market has seen significant activity in 2025, with $19 billion worth of potentially taxable transactions. According to a Chainalysis report, this figure represents around 56% of the country's total crypto activity.

The report notes that not all of these transactions will be subject to tax, as only those resulting in income or profits will be taxed. Currently, India imposes a 30% tax on VDA gains and a 1% TDS under Section 194S.

Crypto exchanges in India are now under stricter compliance rules, requiring users to undergo KYC checks and maintaining records of transactions. This has made crypto transactions carried out on exchanges easier to track.