The Indian tax authorities stated at the Parliamentary Standing Committee on Finance that crypto asset transactions pose significant risks in tax regulation. Offshore exchanges, private key wallets, and DeFi tools make it more difficult to track and identify taxable income. Cross-border transactions involving multiple jurisdictions further complicate enforcement, and some transactions are almost impossible to reconstruct during tax assessments. India currently levies a flat 30% tax on crypto asset gains and imposes a 1% withholding tax on all transfers. However, given the cautious regulatory stance, industry insiders believe that the relevant tax system faces challenges in fairness and feasibility during practical implementation. (Cointelegraph)