India's Crypto Users Bypass Taxes with Gift Card Loophole

Many Indian crypto users are turning to offshore exchanges as a way to bypass tax obligations. The trend highlights growing challenges for India's tax enforcement and regulatory visibility.

Crypto users in India are converting their digital assets into gift cards, which they then use for everyday spending. This development creates a potential gap between crypto taxation, AML oversight, and consumer payments.

By moving crypto through offshore platforms and converting it into vouchers, Indian users may bypass traditional points where transactions come under India's tax, AML, and cross-border payment oversight.