India Warns Crypto Trading May Obstruct Tax Enforcement

Financial regulators in India caution that offshore platforms, private wallets, and decentralized finance tools hinder tracking income under the country’s strict tax rules.

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Terms & Concepts
  • DeFi (decentralized finance): Blockchain-based financial services without intermediaries, enabling peer-to-peer transactions through smart contracts.
  • Private wallet: A cryptocurrency storage tool in which only the owner holds the private keys, making transactions harder to track.
  • 30% tax regime: India’s policy imposing a 30% tax on crypto gains, with an additional 1% tax withheld on all transfers.