India to introduce cryptocurrency reporting system in April 2027

Key points:

• India is preparing to expand its oversight of offshore cryptocurrency assets by 2027.
• In 2026, the country will sign a Multilateral Competent Authority Agreement for cryptocurrencies.
• The new system will increase transparency, strengthen regulatory oversight, and promote broader legitimacy for cryptocurrencies in India.

India is preparing to implement global cryptocurrency reporting rules by adopting the Organization for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF). The rules will come into force in April 2027. They will enable the automatic exchange of data on cryptocurrency transactions, improve compliance, and increase regulatory transparency.

India to sign a document on the exchange of information on crypto transactions

A representative of the Ministry of Finance also explained that in 2026, India will sign the Multilateral Competent Authority Agreement (MCAA), which will provide a legal basis for the automatic exchange of tax information.

Although India signed the MCAA in 2015 for financial accounts, it will only be possible to extend its scope to crypto assets through a new agreement. KoinX highlighted the significance of this change, noting:

“It means your foreign exchange accounts, wallets, and offshore trades won’t stay invisible. They’ll be automatically reported back to India through international data-sharing agreements.”

Источник: x.com

What this means for investors

The company also urged investors not to delay compliance: law enforcement agencies may take action under existing legislation on undisclosed income even before 2027.

Industry analysts acknowledge that while CARF may seem restrictive to investors using offshore platforms, the system should increase transparency, strengthen regulatory oversight, and promote broader legitimacy for cryptocurrencies in India.

A representative of the Ministry of Finance added that legislative changes and system preparations are already underway to meet the 2027 deadline.