CBDT’s Crypto Asset Reporting Guidance Raises Compliance Bar For Exchanges

In a bid to address the taxation related complexities of crypto trading in India, the Central Board of Direct Taxes (CBDT) issued a new guidance outlining the reporting and due diligence obligations of crypto exchanges and other service providers. Crypto-Asset Reporting Framework (CARF), which applies to all crypto transactions beginning calendar year 2026, will mandate crypto service providers to identify reportable users, establish their tax residency and file details of specified transactions