Indian authorities say that crypto tax enforcement is difficult, and a unified 30% profit tax is hard to implement.

2026-01-08 08:57:33

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On January 8th, Indian financial authorities reiterated their concerns about cryptocurrency trading and warned that it could complicate tax enforcement. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks and may make tracking cryptocurrency income “almost impossible.” Cryptocurrency enables “anonymous, borderless, and near-instant” value transfers, allowing people to transfer funds without regulated financial intermediaries. Currently, India imposes a flat 30% tax on profits from all cryptocurrency activities, and all transfers (regardless of profit) are subject to a 1% withholding tax. Although India officially permits cryptocurrency trading under a high-tax regime and has approved the return of major US trading platform CEX in 2025, the Indian government’s overall attitude towards cryptocurrencies remains cautious and complex.

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