India to Enforce Global Crypto Reporting Rules by 2025
India’s Finance Ministry will enforce global crypto reporting rules by January 2025. These global crypto reporting rules follow the OECD’s Crypto-Asset Reporting Framework (CARF). Under the new regime, domestic and overseas crypto exchanges must report transactions above a EUR 250 threshold to tax authorities. The ministry will hold consultations with platforms like WazirX and CoinDCX, gathering feedback until June. The measure aims to strengthen crypto tax compliance and curb tax evasion. It aligns India with international tax transparency standards and the Common Reporting Standard (CRS). Non-compliance may trigger penalties. Analysts warn the new rules could tighten market liquidity in the short term but enhance long-term stability by boosting institutional trust in the Indian crypto market.
Neutral
The enforcement of global crypto reporting rules signals a significant regulatory shift. By mandating transaction reporting above EUR 250, authorities will increase transparency and reduce tax evasion. Historically, similar measures in Europe led to a temporary dip in trading volumes as KYC procedures tightened. This could momentarily constrain liquidity in India’s crypto market. However, clearer rules often attract institutional investors, who value regulatory certainty. Over time, enhanced transparency may foster market maturity and stability. Given the balanced short-term pressure and long-term benefits, the impact is likely neutral. Traders should monitor compliance deadlines and any penalties to adjust strategies in response to evolving reporting requirements.