India's Tax Authority Flags Crypto Risks, Opposes Market Entry
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 08 2026- Compliance Risk Warning: The Indian Income Tax Department highlighted significant challenges in tax compliance related to virtual digital assets (VDAs) like cryptocurrencies, particularly due to their anonymity and borderless nature, which complicates tracking and assessing taxable income in cross-border transactions.
- Strengthened Regulatory Measures: To enhance oversight of virtual assets, Indian authorities are implementing mandatory registration and Tax Deducted at Source (TDS) mechanisms aimed at improving transparency and compliance, thereby enabling more effective monitoring of digital asset activities.
- International Comparison: In contrast to India's cautious approach, Japan plans to significantly reduce capital gains tax on crypto assets by 2026, reflecting differing global strategies in cryptocurrency regulation.
- Investor Protection Priority: The Indian government prioritizes investor protection and tax compliance before fully opening the digital asset market, demonstrating a strong commitment to financial security and regulatory enforcement.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
