Crypto Tax Net Tightens: India Locks Into OECD Framework for Offshore Assets
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TLDR: India will enforce OECD crypto reporting rules from April 2027, covering offshore wallets and foreign exchange accounts. The Crypto-Asset Reporting Framework enables global tax authorities to automatically share data on cross-border crypto activity. India will sign the Multilateral Competent Authority Agreement in 2026 to begin implementing OECD’s surveillance framework. Past offshore crypto holdings may also be flagged once the system is live, exposing undisclosed trades and assets. India is preparing to overhaul the way offshore crypto holdings are tracked. The government will adopt the OECD’s Crypto-Asset Reporting Framework (CARF) by April 2027. Once live, the system will connect India to a global data-sharing network. This means wallets, trades, and balances held abroad will no longer stay hidden. The move closes a major gap in cross-border crypto taxation. The OECD CARF to Reshape India’s Offshore Crypto Holdings According to a report by Business Standard, India will sign the Multilateral Competent Authority Agreement in 2026. That agreement sets the foundation for CARF to function across countries. Once integrated, exchanges and service providers abroad will automatically share user data with Indian authorities. The framework mirrors an existing system already used to track hidden foreign bank accounts. Now, it will cover crypto wallets, custodians, and centralized exchange accounts. That means offshore trades made years earlier may also get flagged once reporting begins. KoinX explained on X that the change is not limited to future transactions. Data collected after 2027 could expose assets from previous years. This gives the government power to trace undisclosed income, even retroactively. For investors who relied on foreign accounts to avoid scrutiny, compliance will no longer be optional. Tax notices could be issued for unreported gains stretching back multiple years. If you think holding your crypto in offshore/foreign exchanges keeps you safe from the Indian tax net, you should…
Filed under: News - @ September 3, 2025 2:29 pm