Report: India to launch global crypto data exchange in 2027

India’s cryptocurrency sector is moving into a new phase as regulators tighten oversight. From 1 April 2027, the government will begin sharing cross‑border crypto transaction data with other countries, marking a shift towards stricter tracking, taxation, and regulation of digital assets, as reported by The Economic Times.

India’s approach to cryptocurrency has been mixed, with widespread trading among citizens but persistent concerns from policymakers over risks such as tax evasion and money laundering. Rather than banning crypto, the government has opted for strict regulation, taxation, and cooperation with other countries, with its decision to join an international data‑sharing system marking the latest step in this strategy.

Why crypto regulation is back

Crypto regulation in India is drawing renewed attention because much of the trading by Indian users takes place on overseas platforms, making it difficult for domestic regulators to monitor. With transactions crossing borders, national oversight alone is insufficient, and India has recognised the need for international cooperation to address the issue.

Many Indian traders use foreign crypto exchanges because they offer easier access and wider options, but this creates gaps for tax authorities. Regulators find it difficult to monitor gains, losses, or ownership in the absence of shared data, which makes it harder to identify abuse and presents compliance issues for legitimate investors.

Global crypto transparency standard

The OECD created the Crypto‑Asset Reporting Framework (CARF), a global standard intended to increase the transparency of cryptocurrency transactions. CARF expands information‑sharing regulations to digital assets by building on current international tax reporting systems. It mandates that crypto platforms communicate data with tax authorities internationally, much as banks do with traditional accounts.

India has signed on to CARF and will begin exchanging crypto transaction data with other countries from 1 April 2027. From that date, Indian tax authorities will share and receive information on cross‑border crypto activity, strengthening oversight of digital assets held offshore.

How cross‑border crypto data sharing work

Under CARF, cross‑border crypto data sharing will operate through the automatic exchange of information. Platforms will provide transaction details to local tax authorities, who will then share them with other countries. The data will cover transaction amounts, asset types, wallet identifiers, and user information, while the technical format for this exchange is being finalised to ensure the system functions smoothly.

Cross‑border crypto reporting is important because it reduces the risk of illegal financial transfers, increases transparency, and assists governments in combating tax evasion. India will benefit from increased compliance and a more stable revenue base as a result of entering the system.

The Financial Action Task Force (FATF) has called for stricter regulation of digital assets, particularly when they are used internationally. By implementing CARF, India is bringing its crypto policy into line with global standards.

Union Budget 2026 and penalties

The Union Budget 2026 imposes penalties for cryptocurrency reporting errors from 1 April 2026. A ₹200 daily penalty will be imposed for failing to file the necessary statements, and a flat ₹50,000 penalty will be imposed for false reports.

India’s current crypto tax framework includes a 30 percent tax on gains, introduced in 2022, and a 1 percent tax deducted at source (TDS) on transactions. Together, these measures create a clear record of activity and ensure oversight even before the new global reporting system takes effect.

Given that digital assets travel across borders and necessitate joint monitoring, India’s broader strategy for cryptocurrency regulation centres on international coordination. Encouraging innovation while preserving financial stability is the goal. Investors should expect more precise regulations, stricter oversight, and stronger compliance mechanisms in the run‑up to 2027, opening the door to a more transparent and globally integrated cryptocurrency market.