India to Implement OECD Crypto Reporting Framework by 2027 Amid Retail Investor Surge

India will begin automatic exchange of cross-border crypto transaction data starting April 2027 under the Crypto-Asset Reporting Framework (CARF), an OECD-developed system designed to combat tax evasion in digital asset markets. The MOVE comes as Indian retail investors continue accumulating crypto positions during market downturns.

The framework mirrors existing financial information-sharing systems but specifically targets opaque crypto flows. Officials confirm technical specifications are nearing completion, with implementation expected to follow the three-year timeline. Notably, the system aims to address the current blind spot where most Indian traders use offshore platforms beyond domestic oversight.

Separately, Budget 2026 introduces stringent penalties for non-compliance: ₹200 daily fines for reporting failures and ₹50,000 flat penalties for erroneous filings. The measures reflect growing institutional efforts to bring transparency to crypto markets while accommodating retail participation.