India is set to adopt the OECD’s Crypto-Asset Reporting Framework (CARF), a major step that will enable the automatic sharing of crypto transaction data with other countries. The new rules are expected to take effect in April 2027. This move, which follows similar plans by South Korea, is aimed at increasing regulatory transparency and cracking down on offshore tax evasion.
To implement CARF, India plans to sign the Multilateral Competent Authority Agreement (MCAA) next year, creating the legal foundation for this data exchange. This is an expansion of a similar agreement India already has for traditional financial accounts, ensuring that crypto assets are now included in the global system for exposing hidden foreign holdings.
The new framework will require crypto exchanges, especially offshore centralized exchanges, to report user data and transaction details. Tax firm KoinX warned that this system will allow the government to see not only current-year transactions but also past ones, giving authorities a “time machine” to uncover previously undisclosed assets. As a result, investors are being urged to become compliant now by accurately reporting their crypto holdings and trades to avoid potential penalties.
September 2025, Cryptoniteuae
