CBDT Unveils Detailed Guidance for Crypto Exchanges on Reporting Obligations

The Central Board of Direct Taxes (CBDT) has released detailed guidance for crypto-asset service providers to comply with reporting obligations under the Income-tax Act, 2025.

The guidance clarifies that classification as a 'relevant crypto-asset' depends on its functionality rather than labels such as cryptocurrency or security token.

Crypto exchanges and other intermediaries will be required to identify reportable users and submit user identification details along with information on transactions, including 'reportable retail payment transactions' exceeding $50,000.