India Issues New Crypto Reporting Guidelines for Exchanges Under CARF

• India is planning to comply with CARF crypto reporting standards under the Income Tax Act.
• The country mandates crypto exchanges and platforms to report transaction details.
• Nearly 50 countries have already implemented these crypto reporting rules. 

The Indian government has taken a major step toward bringing more transparency to the reporting of digital asset transactions. As global countries have already implemented the OECD’s Crypto-Asset Reporting Framework (CARF), India has also introduced new crypto reporting guidelines for exchanges and other platforms. Under the CARF, these platforms are required to report transactions to the Income Tax Department.

It is important to note that the latest crypto reporting guidelines do not include new tax policies. Instead, it is designed to improve tax transparency, in line with the OECD’s CARF. Via this global tax information system, India intends to report crypto transactions in a common structure and share it with the participating countries.

India Introduces CARF Crypto Reporting Guidelines

India’s new crypto reporting guidelines reveal how the country is strengthening tax transparency for exchanges and service providers. As per the new rules, Reporting Crypto-Asset Service Providers (RCASPs) are required to comply with crypto reporting obligations under the Income Tax Act, 2025.

Aligning with the Organisation for Economic Co-operation and Development’s (OECD) CARF, India has launched a standardized reporting framework. With this move, the government envisions improving visibility into virtual digital asset (VDA) transactions. It also intends to minimize information gaps in the crypto space, which occur due to the decentralized nature of digital assets.

Mudrex CEO Edul Patel acknowledged this development as a “meaningful step” towards a comprehensive crypto regulatory framework in India. He added,

“While the guidance note is focused on tax reporting rather than regulation, it lays an important foundation for a broader policy framework. As reporting standards become more robust, policymakers will be better positioned to develop balanced regulations that protect investors while enabling innovation.”

Who Needs to Comply with the New CARF Rules?

Interestingly, the new crypto reporting rules under CARF is applicable to Reporting Crypto-Asset Service Providers (RCASPs). RCASPs are businesses that allow users to buy, sell, exchange, or transfer digital assets. In simple terms, these include crypto exchanges, trading platforms, brokers, and other intermediaries.

According to the CARF rules, these platforms are responsible for collecting and reporting information related to digital asset transactions. This is to ensure that crypto transactions are recorded and reported aligning with global standards. Such a standardized process helps tax authorities to monitor related activities easily. As the CBDT has issued these guidelines, the RCASPs can now better understand and meet their crypto reporting obligations.

More Countries Are Adopting Global Crypto Reporting Standards

The CARF, developed by the OECD, is becoming the global standard for crypto reporting. It allows countries to automatically share details on crypto holdings and transfers. As of now, more than 70 jurisdictions have already commited to comply with the rules. Around 50 jurisdictions, including Brazil, Chile, Israel, Japan, New Zealand, South Africa, and the United Kingdom, have already implemented these rules.

While India is also planning to comply with the global crypto reporting standards, experts say that the move reflects a long-standing concern in the country. India lacks a clear crypto regulatory framework, with investors increasingly exposed to fraud, market manipulation, and other risks. Following the launch of CARF guidelines, many believe that India is moving closer to establishing more comprehensive regulations.

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