India's Crypto Moves Under Global Spotlight: No More Offshore Hiding

India will implement the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF) by April 1, 2027, marking a significant step toward global crypto tax transparency and compliance for Indian residents. This move will require cryptocurrency exchanges and platforms to share detailed transaction data with tax authorities worldwide, making it more difficult for individuals to conceal offshore crypto activities [2]. The implementation is part of a broader international effort to increase oversight and enforce tax obligations on digital assets.

Under the new rules, Indian residents who trade on foreign platforms—such as Bitcoin exchanges outside the country—will find their transactions reported directly to Indian tax authorities. This will ensure that all gains from crypto trading are taxed appropriately, reducing opportunities for tax evasion [2]. A senior official from the Ministry of Finance confirmed the implementation timeline, emphasizing the government’s commitment to aligning with global standards.

The Indian tax authorities have already begun taking enforcement actions. In recent weeks, the Income Tax Department issued notices to individuals who had not reported virtual digital asset (VDA) trades in previous years. The Department has requested detailed information for the financial year 2022-23, including trade dates, unlisted holdings, and associated bank accounts. These steps signal a growing focus on compliance and deterrence of non-reporting [2].

Koinx, a leading crypto tax software provider, highlighted the significance of the CARF implementation in a post on September 2, 2025. The firm noted that the framework would introduce global monitoring of crypto accounts, wallets, and offshore trades. This data will be shared internationally through agreements between tax authorities, further reinforcing the transparency goals of the initiative [2].

India’s move is part of a larger global trend. South Korea has also committed to adopting the CARF, with plans to begin domestic data collection in 2026 and expand international reporting by 2027. The strategy mirrors India’s phased approach and reflects an increasing consensus among nations to regulate digital assets more rigorously. As the framework rolls out, crypto investors will need to adjust their strategies to remain compliant and avoid penalties [2].

The adoption of CARF by India and other countries underscores the growing recognition of the need for standardized crypto reporting mechanisms. With increased cross-border data sharing, the global crypto market is expected to become more transparent and regulated, benefiting governments by improving tax collection and reducing illicit activity. Investors must now operate under a more accountable system where offshore transactions are no longer shielded from scrutiny [2].

Source: [1] Bureaucratic Stalemate Keeps India on Sidelines as ... (https://finance.yahoo.com/news/bureaucratic-stalemate-keeps-india-sidelines-042352505.html) [2] India to Adopt Global Crypto Tax Reporting Rules by 2027 (https://www.livebitcoinnews.com/india-to-adopt-global-crypto-tax-reporting-rules-by-2027/)