India Adopts Global Crypto Reporting Standards Under CARF

The Indian government has issued new guidelines for Reporting Crypto-Asset Service Providers (RCASPs) under the Crypto-Asset Reporting Framework (CARF), as part of efforts to improve tax transparency in the country.

The CARF, developed by the Organisation for Economic Co-operation and Development (OECD), is a global standard for crypto reporting that allows countries to automatically share details on crypto holdings and transfers. Over 70 jurisdictions have committed to comply with the rules, including more than 50 countries such as Brazil, Chile, Israel, Japan, New Zealand, South Africa, and the United Kingdom.

The new guidelines do not introduce new tax policies but aim to improve visibility into virtual digital asset (VDA) transactions by requiring RCASPs to report transactions to the Income Tax Department. This will enable the government to monitor related activities more easily and minimize information gaps in the crypto space due to its decentralized nature.

Mudrex CEO Edul Patel described the move as a 'meaningful step' towards a comprehensive crypto regulatory framework in India, laying an important foundation for policymakers to develop balanced regulations that protect investors while enabling innovation.