The Indian government has enforced stringent tax regulations for cryptocurrency earnings. Unreported profits now face penalties up to 70%.
Introduction of New Tax Regulations
As part of the 2025 budget, the Indian government has implemented new tax measures where cryptocurrency earnings are treated similarly to those from gold and cash. Finance Minister Nirmala Sitharaman announced Virtual Digital Assets (VDAs) as taxable entities.
Impact on Crypto Exchanges
Crypto exchanges like Binance and Bybit are under regulatory pressure in India, with Bybit even suspending its operations in January 2025. This follows the discovery of nearly $97 million in undeclared taxes.
Penalties for Unreported Profits
The government has tightened the verification of cryptocurrency earnings, requiring traders to be more diligent in reporting their income. Any unreported earnings from the past four years may be reassessed and taxed.
India's tightening of cryptocurrency regulations demands greater tax compliance from investors and traders to avoid hefty fines.
