Indian tax authorities warn of regulatory risks associated with crypto assets, with DeFi and cross-border platforms posing major challenges.

PANews reported on January 8th, citing Cointelegraph, that the Indian Income Tax Department (ITD) warned during a parliamentary finance committee meeting that overseas exchanges, private wallets, and DeFi tools are making it increasingly difficult to track crypto income and hindering tax enforcement. Although India imposes a fixed 30% tax rate on crypto profits and a 1% TDS on transfers, anonymous cross-border transfers make re-establishing the trading chain "virtually impossible." The official stance remains cautious, despite a continued rise in local adoption.