Crypto Exchanges Must Verify Tax Residency and User Details Under CBDT Rules From 2026 to Improve Transparency
The Central Board of Direct Taxes (CBDT) has come up with a new Crypto Reporting Framework. It introduces clear rules for Indian crypto exchanges in terms of reporting crypto transactions. The new guidelines will apply from the 2026 calendar year and aim to improve tax transparency without changing the current crypto tax system.
Under the new framework, crypto exchanges and other crypto service providers must identify users who need to be reported. They must also verify each user’s tax residency and collect the required tax details before submitting annual reports to the tax department.
OECD-Based Framework Brings Global Reporting Standards
The framework follows the Crypto Asset Reporting Framework developed by the Organisation for Economic Cooperation and Development (OECD). It will help countries share tax information on crypto transactions and improve tracking of cross-border digital asset activities.
The crypto industry has welcomed the move, saying it gives businesses a clear compliance process instead of creating new tax rules. Many companies believe the framework will reduce confusion and help the industry adopt a single reporting standard.
Mudrex Chief Executive Officer Edul Patel said the new guidelines are an important step toward a better policy for digital assets in India. Clear reporting rules can help policymakers prepare balanced regulations that protect investors while allowing the industry to grow.
CoinSwitch Co-founder Vimal Sagar Tiwari said common reporting standards will reduce the chances of hiding taxable crypto transactions. Better reporting will increase trust among investors, crypto exchanges, and tax authorities.
Crypto Exchanges Must Start Compliance From 2026
CBDT Chairman Ravi Agrawal said crypto assets have created new tax challenges because they move across countries outside the traditional financial system. The new reporting framework will now help tax authorities receive better information on such transactions.
Crypto exchanges must start following these rules for transactions made in 2026. The first reports will be filed by May 31, 2027. Although the framework does not regulate cryptocurrencies, industry experts believe this is an important step toward a clear and balanced crypto policy in India.
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