Indian tax authorities: Crypto asset trading poses significant risks in terms of tax oversight.

Indian tax authorities, at a meeting of the Parliament's Standing Committee on Finance, pointed out that cryptocurrency trading poses significant risks for tax regulation. Offshore exchanges, private key wallets, and DeFi tools make tracking and identifying taxable income more difficult. Cross-border transactions involving multiple jurisdictions further complicate enforcement, and some transactions are virtually impossible to reconstruct in tax assessments. India currently levies a flat 30% tax on cryptocurrency gains and a 1% withholding tax on all transfers. However, given its cautious regulatory stance, the industry believes that this tax system faces challenges in terms of fairness and feasibility in practice. (Cointelegraph)