India will implement the OECD’s global crypto tax reporting rules by 2027, increasing transparency and enforcing tax compliance on offshore digital assets.
Global efforts to monitor digital assets are growing stronger every day. India is now preparing to tighten its oversight of offshore cryptocurrency holdings. A senior official at the Ministry of Finance confirmed recently that the crypto asset reporting framework specified under the Organisation for Economic Co-operation and Development (OECD), Crypto-Asset Reporting Framework (CARF) will become applicable from April 1, 2027.
New Global Crypto Tax Rules Target Indian Investors
This new framework will mean that exchanges and other platforms will need to be able to provide detailed transaction data to tax authorities around the world. As a result, Indian residents would no longer be able to mask their crypto activities overseas. The move is to ensure that all digital asset earnings are taxed correctly.
Also, crypto tax software provider Koinx pointed out the significance of this shift. On September 2, 2025, the company shared on an X post about the impact of CARF. They said it will introduce world monitoring to the crypto world. All such accounts, wallets, and offshore trades would be monitored and reported back to the country through international agreements.
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For example, if one of the Indians trades Bitcoin through a foreign platform then the information will be provided to the Indian tax authorities. This step will force investors to pay proper taxes on their profits from cryptocurrencies while increasing the difficulty for them to evade taxes.
In addition, the Indian tax authorities are already pursuing non-compliant investors. In recent weeks, the Income Tax Department started sending notices to individuals with respect to unreported trades of virtual digital assets (VDAs) in previous years. On August 25, 2025, Koinx published a message on social media that drew attention to this crackdown. They reported that even trades from years ago, some years old, could potentially be in question.
For the financial year 2022-23, authorities have stipulated comprehensive information such as buy and sell dates, unwritten holdings, and bank accounts associated with the transaction. This aggressive approach signals that the government is taking this issue seriously and is committing to enforcing crypto tax regulations.
New Crypto Tax Reporting Rules Signal in India Global Shift Toward Transparency
But other nations also are participating in this global initiative. In addition, South Korea has chosen to join the OECD’s CARF. In other words, they will provide transaction details of foreign investors engaging in trading transactions on domestic exchanges such as Upbit and Bithumb to tax authorities abroad.
On the other hand, South Korean residents who hold foreign crypto will report their holdings to their National Tax Service. The new framework will take effect in 2026 with domestic data collection and scale to full international sharing in 2027. This step-by-step approach is modeled after India’s strategy and aligns with the global trend towards greater transparency in the crypto space.
In conclusion, India’s embrace of the CARF by 2027 promises to usher in transformative shifts for crypto investors. The new law will make it impossible for offshore transactions to go undetected by the tax authorities. At the same time, the steady stream of official crackdowns on non-reportable trades shows that compliance matters. As more countries are adopting this framework, such as South Korea, the crypto market will eventually become more regulated on a global scale. Investors will have to adjust to these changes to prevent penalties while remaining on the right side of the law. This is a new dawn of accountability of digital assets across the globe.
