India Aligns Cryptocurrency Reporting Rules with OECD Framework

India has aligned its cryptocurrency reporting rules with the OECD's global framework, requiring crypto exchanges and other digital asset intermediaries to collect users' tax residency and taxpayer identification details. The Central Board of Direct Taxes (CBDT) issued a detailed compliance framework for reporting crypto asset service providers (RCASPs), operationalising India's commitment to the Crypto Asset Reporting Framework (CARF).

The framework creates a common global reporting standard, allowing participating jurisdictions to automatically exchange information on reportable crypto transactions. This move is expected to strengthen tax authorities' ability to monitor cross-border crypto transactions and address potential tax evasion.

According to Amit Maheshwari, managing partner at AKM Global, 'The new framework is expected to strengthen the tax authorities' ability to monitor cross-border crypto transactions and address potential tax evasion through international exchange of information.'

The CBDT's 198-page guidance note provides a comprehensive operational roadmap for reporting agencies, explaining how exchanges and other reporting entities should undertake customer due diligence.