In a new initiative, India’s Ministry of Finance has placed new emphasis on calling for globally harmonized rules on digital assets. It also revealed that authorities have busted more than 4.19 billion rupees ($465 million) worth of crypto-related crimes in recent years.
India’s Finance Minister Nirmala Sitharaman said India is unable to effectively police an industry that is “essentially borderless”. This comes as the global cryptocurrency market is in the process of recovery after experiencing intense selling pressure. Bitcoin has managed to recover around 7% in the past seven days, but is still down more than 10% in the past 30 days.
India identifies $99 million in unreported crypto income
Speaking in the Lok Sabha session, Sitharaman said any regulatory framework for crypto assets can only be effective with international cooperation. This is consistent with the government’s long-standing stance towards crypto assets.
India sees crypto assets in a different trajectory. It does not treat virtual currencies as legal tender, but allows them to be bought, sold, and held as virtual digital assets (VDAs) under strict tax rules. Profits are taxed at a flat rate of 30% plus cess, while most transactions are subject to 1% TDS. These regulations ultimately pushed trading activity overseas.
During the session, Sitharaman also revealed that tax officials: Identified 888.82 million rupees (approximately $99 million) in unreported virtual currency Proceeds during search and seizure operations. The Enforcement Directorate has seized or seized 4,189.89 million rupees (approximately $466 million) under the Prevention of Money Laundering Act (PMLA). However, authorities have also arrested 29 people and filed 22 charges.
BREAKING NEWS: 🇮🇳Government has identified and revealed 3 crypto exchanges that are not following TDS rules for Indian users:
• TDS non-compliance: ₹39.8 Cr
• Undisclosed Income: ₹125.79 Cr
• Additional search and seizure amount: ₹888.82 CrSource: Ministry of Finance
— Crypto India (@CryptooIndia) December 8, 2025
She added that the government’s Coinbase resumed registration in India this week. Cryptocurrency exchanges were forced to scale back operations in 2023 due to the UPI failure. However, it currently allows transactions between cryptocurrencies and plans to resume trading in fiat currencies in 2026, pending approval from the Financial Intelligence Bureau.
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