India Aligns Cryptocurrency Rules with Global OECD Framework

India has aligned its cryptocurrency reporting rules with the OECD's global framework. The Central Board of Direct Taxes (CBDT) issued a detailed compliance framework for reporting crypto asset service providers to comply with reporting obligations under Income Tax Act, 2025.

The new framework requires crypto exchanges and other digital asset intermediaries to collect users' tax residency and taxpayer identification details. They must also share transaction details annually with the Income Tax Department. This move operationalises India's commitment to the Crypto Asset Reporting Framework (CARF) developed by the OECD along with participating jurisdictions, including India.

CARF was designed to plug information gaps that allowed crypto assets to be held or transferred outside the traditional financial system. This made it difficult for tax authorities to track cross-border transactions. The framework creates a common global reporting standard under which participating jurisdictions can automatically exchange information on reportable crypto transactions.