India Expands Tax Reporting Framework for Crypto Assets

India has tightened its grip on cryptocurrencies and digital assets by expanding its global tax reporting framework. The country's new law includes crypto, central bank digital currencies (CBDCs), and other digital assets under international tax rules.

The Indian government has introduced a new layer of crypto regulation by mandating financial organizations to report crypto-related accounts along with traditional assets. This move is part of the country's adoption of the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).

Financial institutions in India are now required to conduct enhanced reviews of accounts with more than $1 million in holdings, improve the accuracy of account classification, and strengthen information shared with foreign tax authorities.