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Experts Welcome India’s CARF Move, Predict Greater Transparency and Trust in Crypto Market.
CARF Adoption to Strengthen India’s Crypto Ecosystem and Investor Confidence
India is set to implement the Crypto-Asset Reporting Framework (CARF) by 2027, marking a significant step toward enhancing transparency and standardization in the country’s burgeoning crypto market. Developed by the OECD and endorsed by the G20, CARF establishes a global standard for reporting crypto-asset transactions and enabling Automatic Exchange of Information (AEOI) between jurisdictions.
Under the Finance Bill 2025, India will begin mandatory reporting for entities dealing in Virtual Digital Assets (VDAs) from April 1, 2026. From 2027 onwards, this information will be shared with other countries as part of the CARF framework. The move is expected to strengthen enforcement of existing measures such as the 1% TDS and anti-money laundering obligations while providing regulators with reliable, standardized data to monitor cross-border crypto activity.
Edul Patel, co-founder of Mudrex, highlighted the need for clarity in India’s crypto regulations, stating, “It’s not clear whether the liability lies on the global platform or whether the liability lies on the individual user. Having some common framework like this will help solve reporting problems and taxation problems.” Patel added that while crypto trading is legal in India, the absence of a regulator has led to reduced trust and participation among users.
Experts also weighed in on the implications for exchanges and investors. Ashish Singhal, co-founder of CoinSwitch, said, “CARF is not something investors need to worry about in their day-to-day use of cryptoassets. It operates in the background, with crypto exchanges sharing standardized transaction data with sovereign tax authorities. The framework is not intrusive and is designed to create a consistent way for countries to exchange information.”
On compliance costs, Singhal noted that most Indian exchanges are already aligned with reporting obligations under existing laws, and CARF’s standardization could ultimately reduce duplicative reporting. Similarly, Sumit Gupta, co-founder of CoinDCX, observed that while compliance will become more structured as the industry matures, larger players are prepared to absorb these costs, potentially driving healthier consolidation within the market.
By adopting CARF, India is aiming to build a robust, transparent, and globally coordinated ecosystem for crypto assets, providing both regulatory clarity and confidence for investors in the rapidly evolving digital economy.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 20, 2025, 17:55 IST
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