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Dec 10, 2025
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44,000 crypto traders on Income Tax Dept’s radar: Govt tightens watch on black money in virtual digital assets
The government has told Parliament that over 44,000 tax notices have been issued to people who traded in crypto but did not report it in their Income Tax Returns.
This single number shows how large the unreported trail is — thousands of investors bought and sold digital assets, but their gains never made it to official records.
Crypto unregulated, but not unwatched
India does not have a law specifically regulating cryptocurrencies yet. The government says crypto assets are inherently borderless, so regulating them locally without global alignment may not work.
“Crypto-assets/Virtual Digital Assets (VDAs) are unregulated in India, and the government does not collect data on them. As these assets are inherently borderless, they require strong international coordination to prevent regulatory arbitrage. Therefore, any regulatory framework for crypto assets can be effective only with significant international collaboration on the evaluation of the risks and benefits and the evaluation of common taxonomy and standards,” the government said replying to queries around crypto regulations.
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