India set to share cross-border crypto transaction data from April 2027

The data will be shared under the OECD-led Crypto-Asset Reporting Framework, enabling automatic exchange of crypto transaction details between tax authorities

India is moving closer to tighter oversight of cryptocurrency transactions, especially those involving overseas platforms. As part of this push, the government will begin exchanging cross-border crypto transaction data with other countries from April 1, 2027, under a global information-sharing system being developed by international tax bodies, The Economic Times reported.

 

Officials said preparatory work is already underway, even as the Union Budget proposes strict penalties to ensure crypto platforms and intermediaries comply with reporting rules as India joins the global exchange mechanism, the report said.

 

What global system will India join?

 

The data exchange will take place under the Crypto-Asset Reporting Framework (CARF), a global standard led by the Organisation for Economic Co-operation and Development. The framework requires countries to automatically share information on crypto transactions between tax authorities, similar to existing systems used for banking and financial data.

 

India has signed on to CARF and will start sharing and receiving information from April 2027. The report quoted an official as saying that the technical format for exchanging this data is currently being finalised and is expected to be released within the next few months.   

 

Why is cross-border crypto reporting important?

 

The government has repeatedly flagged concerns that a large share of crypto trading by Indian users takes place on foreign platforms. This makes domestic oversight difficult and increases the risk of tax evasion and illicit financial flows.

 

Officials quoted in the report said global coordination is essential to effectively track such transactions. India’s move also aligns with recommendations from the Financial Action Task Force, which has called for stronger international cooperation to monitor digital assets.

 

To prepare for the shift, the government is tightening reporting requirements and supervision of crypto platforms operating in India. The Centre also plans to engage with crypto exchanges and intermediaries to help address technical and operational challenges linked to compliance.

 

What penalties has Budget 2026 proposed?

 

The Union Budget 2026 has proposed new penalties to strengthen compliance with crypto transaction reporting.

 

From April 1, 2026, entities that fail to submit required statements on crypto transactions will face a daily penalty of ₹200. In cases of incorrect reporting or failure to rectify errors, a flat penalty of ₹50,000 will apply, according to the Budget document.

 

Finance Minister Nirmala Sitharaman said the measures aim to strengthen compliance under the Income-tax Act, 2025, and discourage inaccurate or missing disclosures related to crypto assets.

 

Industry players said the proposed penalties, combined with existing taxes, signal tighter compliance expectations for crypto platforms. India had already introduced a 30 per cent tax on crypto gains and a 1 per cent tax deducted at source on transactions in 2022. The additional measures, they said, could raise operational and compliance costs, particularly for domestic exchanges.