India Grapples with Crypto Crime Surge and Tax Evasion Among Youth
Indian authorities report a 773% spike in dubious cryptocurrency transactions, with 11,720 cases recorded in the first eight months of 2024. Government data reveals 82% of these incidents involve individuals in their twenties and thirties, highlighting a generational divide in digital asset adoption.
The country now hosts 34 million virtual asset traders holding ₹24,800 crore in crypto assets as of November 2025. Nearly half conduct transactions on offshore platforms beyond local regulators' reach, creating enforcement challenges for tax collection and financial oversight.
March 2023 amendments to India's Prevention of Money Laundering Act brought crypto exchanges under stringent supervision. The Financial Intelligence Unit mandates registration for all crypto service providers—regardless of jurisdiction—if facilitating rupee trades or transfers for Indian users.
Fifty-two companies have complied with registration requirements thus far. These entities must flag suspicious activity including complex transaction patterns, untraceable fund origins, or potential links to illicit financing—a growing concern as authorities battle terrorist funding and money laundering through digital channels.
