# India digital asset and crypto regulation

> Live situation record from CLSTR: https://clstr.news/situations/india-digital-asset-and-crypto-regulation
> Updated: 2026-08-14T03:51:00.000Z. Sources: 7. Developments: 3.

India is expanding its regulatory framework for digital assets through new tax reporting requirements and financial technology pilots.

Initially, the Central Board of Direct Taxes (CBDT) issued guidance for crypto-asset platforms and foreign exchanges serving Indian users. This guidance, following the February 2026 Union Budget, shifts the primary compliance burden to Reporting Crypto-Asset Service Providers (RCASPs). It requires the reporting of transactions exceeding $50,000 when a provider acts as an agent, utilizing the Common Reporting Standard (CRS) to manage cross-jurisdictional reporting.

Subsequently, the regulatory scope broadened to include digital currencies, central bank digital currencies (CBDCs), and digital money products within India’s automatic exchange of information regime, implementing the Crypto-Asset Reporting Framework (CARF). These updated rules mandate enhanced due diligence for high-value accounts exceeding $1 million. In August 2026, the CBDT further clarified reporting obligations for intermediaries—including exchanges, brokers, and dealers—under Section 509 of the Income-tax Act, 2025. This framework is specifically designed to align with the OECD’s CARF to improve tax transparency and address the tracking of cross-border transactions occurring outside traditional banking systems.

In a parallel development, the Securities and Exchange Board of India (SEBI) launched a pilot program to test tokenized corporate bonds using distributed ledger technology. This pilot aims to utilize the Reserve Bank of India’s wholesale CBDC rails to explore automated debt servicing and faster settlement processes for the corporate bond market.

## Timeline

### 2026-08-14: CBDT issues crypto-asset reporting guidance for India

India's CBDT issued new guidance for crypto-asset service providers to align with OECD transparency standards under the Income-tax Act, 2025.

5 sources. https://clstr.news/cluster/cbdt-issues-crypto-asset-reporting-guidance-for-india

### 2026-08-11: India integrates crypto-assets into tax reporting and pilots bond tokenization

India is integrating crypto-assets and CBDCs into tax reporting guidelines while SEBI pilots tokenized corporate bond settlement using RBI's wholesale CBDC infrastructure.

2 sources. https://clstr.news/cluster/india-integrates-crypto-assets-into-tax-reporting-and-pilots-bond-tokenization

### 2026-07-26: India's CBDT issues new crypto tax guidance for platforms and exchanges

India's CBDT issued guidance placing crypto tax reporting duties on service providers, detailing cross‑border obligations and a $50,000 transaction reporting threshold.

5 sources. https://clstr.news/cluster/indias-cbdt-issues-new-crypto-tax-guidance-for-platforms-and-exchanges

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Cite as: India digital asset and crypto regulation. CLSTR, https://clstr.news/situations/india-digital-asset-and-crypto-regulation