Indian tax authorities warn of regulatory challenges in cryptocurrency, with DeFi and cross-border platforms becoming key challenges

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The Indian Income Tax Authority (ITD) stated during a parliamentary finance committee meeting that overseas exchanges, private wallets, and decentralized finance (DeFi) tools have increased the difficulty of tracking cryptocurrency income, affecting tax enforcement. Despite India imposing a 30% fixed tax rate and a 1% transfer tax (TDS) on encrypted profits, cross-border anonymous transfers make it almost impossible to rebuild the transaction chain. The official attitude remains cautious, despite the continuous increase in the adoption rate of domestic cryptocurrency assets.

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