India tax authorities flag crypto risks amid regulatory uncertainty

India’s tax authorities flagged risks from offshore exchanges, private wallets, and DeFi tools that could make tracking crypto income "virtually impossible."

Financial authorities in India have reiterated concerns over cryptocurrency transactions, warning they could complicate tax enforcement.

India’s Income Tax Department (ITD), under the Central Board of Direct Taxes (CBDT), flagged major risks linked to crypto activity during a parliamentary standing committee on finance, The Times of India reported on Thursday.

The warning came during a Wednesday parliamentary committee meeting involving multiple agencies, including the Financial Intelligence Unit (FIU), the Department of Revenue, and the CBDT, which discussed the report “A Study on Virtual Digital Assets (VDAs) and Way Forward.”

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