Indian authorities are drafting amendments that will impose financial penalties on cryptocurrency exchanges that provide inaccurate or incomplete data on user transactions. This is necessary to bring national regulations into line with the Organisation for Economic Co-operation and Development (OECD) Common Reporting Standard (CARF), with which India plans to begin exchanging data in April 2027.

Under the proposed rules, exchanges face a fine of 200 rupees (about $2.2) for each day of non-compliance, and a one-time fine of 50,000 rupees ($552) for knowingly providing false information. The final version of the rules is expected to be published in April 2026 to give regulators and businesses time to adapt.

These measures are part of a general tightening of control over the crypto industry in the country. Since 2022, India has imposed a high tax on profits from digital assets (30%), and financial authorities have consistently tightened customer identification (KYC) and anti-money laundering (AML) requirements for all market operators.