India is in discussions with cryptocurrency exchanges to monitor trading activity and regulate new crypto products. While the country does not currently regulate cryptocurrencies, global exchanges like Binance and Coinbase operate in India after registering with the government. The Central Board of Direct Taxes is seeking to understand evolving transaction patterns as technology advances.

India has imposed punitive taxes on cryptocurrency gains and the central bank has warned against the risks of crypto trading. Crypto derivatives are currently untaxed and require further study before any policy decisions are made. The government is proceeding cautiously with regulating these “sensitive transactions” to prevent any potential risks.

Global acceptance of cryptocurrencies has increased since President Donald Trump took office in 2025, with bitcoin reaching record highs in October last year. The Indian government views its current tax and legal framework as a deterrent to speculative crypto trading domestically. New Delhi is hesitant to fully regulate crypto assets, opting for partial oversight to mitigate systemic risks.

Read more at Yahoo Finance: India monitoring evolving crypto trading to ensure tax compliance, top tax official says