India Sets CARF-Based Crypto Reporting Rules for Exchanges and Brokers

New reporting obligations

Under the framework, Reporting Crypto-Asset Service Providers, known as RCASPs, must report crypto transaction details to the Income Tax Department. The category covers crypto exchanges, trading platforms, brokers and other intermediaries involved in digital asset activity.

According to the guidance, these entities are expected to collect and submit transaction information in a standardized format. The objective is to ensure crypto activity is recorded and disclosed in a way that is consistent with international reporting norms.

Role of the tax authorities

The guidelines were issued by the Central Board of Direct Taxes, or CBDT, to help reporting entities understand what their obligations are and how they should meet them. The emphasis is on reporting and compliance, not on creating fresh tax policies for the sector.

That distinction is central to the measure. The new rules add a structured reporting layer for firms that facilitate crypto transactions, but the source article does not describe them as a new tax on users or platforms.

Why CARF matters

CARF was developed by the OECD as a framework for reporting crypto-asset transactions in a manner that can support information exchange between jurisdictions. The system is intended to reduce information gaps that can arise because digital assets are decentralized and can move across borders without the reporting structures common in traditional finance.

By adopting CARF-based guidelines, India is positioning its reporting system alongside a broader international push for automatic sharing of information on crypto holdings and transfers. The source article says the framework is emerging as a global standard for this kind of tax transparency.

Global uptake and possible implications

More than 70 jurisdictions have committed to CARF compliance, according to the source article, and about 50 are already implementing the rules. That group includes several major economies, underscoring how widely the reporting model is spreading.

India’s move is presented as part of that trend. While the step is primarily about tax reporting, experts cited in the source article say it may also signal progress toward a clearer regulatory structure for crypto in the country. In that view, better reporting could help address concerns such as fraud and market manipulation while still leaving room for innovation under what they describe as balanced regulation.

For now, the immediate change is a compliance one: exchanges, brokers and other covered service providers will need to report crypto transaction details to the Income Tax Department under a CARF-aligned system designed to support domestic transparency and information sharing with participating countries.