India to Implement OECD Crypto Reporting Framework by 2027: Global Standards Adoption

According to recent reports, India's Ministry of Finance has announced plans to implement the Organization for Economic Cooperation and Development's (OECD) Crypto-Asset Reporting Framework (CARF) by April 1, 2027. This significant regulatory development aims to bring overseas cryptocurrency assets held by Indian residents under systematic tax regulation and reporting. The CARF framework is designed to create a standardized system for the automatic exchange of tax information related to crypto assets, enhancing transparency and regulatory oversight in the digital asset space.

A senior official from India's Ministry of Finance revealed that the country expects to sign the Multilateral Competent Authority Agreement (MCAA) for crypto assets in 2026. This agreement will serve as the essential legal foundation for the automatic exchange of tax information between participating jurisdictions. While India previously signed the MCAA for traditional financial account information in 2015, crypto assets require a separate dedicated agreement under the CARF framework to enable effective cross-border monitoring and information sharing. This move aligns India with global efforts to integrate digital assets into established tax reporting systems.

Preparations for meeting the 2027 implementation deadline are already underway, with the Finance Bill 2025 proposing a new section (285BAA) under the Income Tax Act that will mandate reporting entities to provide comprehensive information regarding crypto asset transactions. These legislative amendments and technical system preparations represent critical steps in India's roadmap to fully adopt global crypto reporting standards. The implementation of CARF will significantly enhance India's ability to monitor offshore crypto holdings and ensure appropriate tax compliance, positioning the country alongside other major economies in establishing comprehensive crypto asset regulation.