Top tax official: India monitors evolving crypto-trading to ensure tax compliance

India has been in contact with cryptocurrency exchanges for a while to gauge the changing trading activities. It is also seeking to monitor newer crypto products.

India does not regulate cryptocurrencies. However, global crypto exchanges like Binance, Coin DCX and Zebpay, which are registered with the government, operate in India.

The central bank of Asia's third largest economy has warned against the risks associated with crypto trading and imposed punitive tax on gains from cryptocurrencies.

Every day, the profile of cryptocurrency transactions changes. As technology evolves, we need to be able to identify new types and patterns of transactions. Ravi Agrawal is the chairman of the Central Board of Direct Taxes.

Agrawal stated that crypto derivatives, which are currently not taxed and require study, need to be studied. He added that the government will "take care" when formulating a policy on such "sensitive transactions".

Since the U.S., global acceptance of cryptocurrency has increased. In January 2025 when President Donald Trump takes office, bitcoin, the largest crypto-asset in terms of market capitalisation in the world, reached record highs last October. Bitcoin has since?come down.

Last year, the Indian government was of the opinion that its tax laws and other laws deter speculative crypto-trading locally.

New Delhi has a tendency to not legislate crypto regulation, but instead would maintain partial oversight. They fear that bringing these assets into the mainstream may raise systemic risk, as reported in September 2025. (Reporting and editing by Mrigank Dahniwala; Nikunj Ahri)

(source: Reuters)