Indian tax authorities warn of crypto asset regulatory risks, with DeFi and cross-border platforms as major challenges

PANews, January 8 — According to Cointelegraph, the Indian Income Tax Department (ITD) warned during a parliamentary finance committee meeting that offshore exchanges, private wallets, and DeFi tools are exacerbating the difficulty of tracking crypto income, hindering tax enforcement. Although India imposes a fixed 30% tax rate on crypto profits and a 1% TDS on transfers, cross-border anonymous transfers make it "almost impossible" to reconstruct transaction chains. The official stance remains cautious, even as local adoption continues to rise.