**Crypto Update: India Reaffirms Trading Concerns, Flags Tax Enforcement Risks** On January 8, Indian financial regulators reaffirmed their concerns about cryptocurrency trading, warning the activity could complicate tax enforcement. The country’s tax department noted offshore exchanges, private wallets, and DeFi tools pose risks that make tracing crypto income “nearly impossible.” Crypto enables anonymous, cross-border, near-instant value transfers — letting individuals move funds without regulated financial intermediaries. India currently levies a flat 30% tax on all crypto profits, plus a 1% tax deduction on every transfer (regardless of whether it’s profitable). While India formally allows crypto trading under this high-tax regime and approved U.S. exchange Coinbase’s return by 2025, the government’s overall stance on crypto remains cautious and nuanced.
