The Indian government has announced a significant tightening of tax regulations on unreported cryptocurrency gains starting in 2025.
Strict Measures for Crypto Holders
Starting February 1, 2025, India is implementing new tax measures affecting anyone who has made gains from cryptocurrencies in the last 48 months. Reporting such gains becomes mandatory, with unreported profits facing a penalty of up to 70% plus additional interest and fines.
Tax Investigations in 2024
Throughout 2024, Indian authorities have actively conducted tax investigations in the cryptocurrency sector. In December, ₹824 crore ($97 million) in unpaid GST was uncovered from various exchanges.
Global Trend Towards Stricter Regulation
Cryptocurrency regulation is becoming stricter not only in India but globally. For instance, the U.S. introduced new reporting rules for digital assets, despite strong opposition from some crypto activists.
The Indian cryptocurrency industry faces increasing pressure from the government aiming to enhance financial scrutiny and transparency.
