India Tightens Crypto Regulation with Expanded Tax Reporting Rules

India has expanded its global tax reporting framework to include cryptocurrencies and other digital assets under FATCA and CRS rules, requiring financial institutions to report crypto-related accounts. This move tightens crypto regulation in India and raises compliance and privacy risks for users and platforms.

The country's new law includes crypto, central bank digital currencies (CBDCs), and other digital assets under international tax reporting rules. The Indian government has introduced a new layer of crypto regulation by expanding its global tax reporting framework.

This expansion is part of India's adoption of the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). These rules mandate financial organizations to report crypto-related accounts along with traditional assets. This indicates that the country is focusing on the broader digital ecosystem beyond crypto.