India Uncovers $465M in Crypto-Linked Crimes While Pushing for Global Regulatory Coordination

Source: CryptoNewsNet Original Title: India flags $465M in crypto-linked offenses while calling for coordinated global regulation Original Link: India’s finance ministry has renewed its push for coordinated global rules on digital assets, while revealing that authorities have uncovered more than ₹4,190 crore ($465 million) in crypto-linked crimes in recent years.

Finance Minister Nirmala Sitharaman stated that the country cannot effectively police an industry that is “inherently borderless.” This statement comes as the global crypto market is experiencing a recovery period. Bitcoin has regained around 7% over the past week, though it remains down more than 10% over the past 30 days.

India Identifies $99M in Unreported Crypto Income

During a Lok Sabha session, Sitharaman emphasized that any regulatory framework for crypto assets can be effective only with international collaboration. This aligns with the government’s long-standing approach to digital assets.

India treats crypto assets distinctly—they are not recognized as legal tender but are allowed for purchase, sale, and holding as Virtual Digital Assets (VDAs) under a strict tax regime. Gains are taxed at a flat 30% plus cess, while a 1% TDS (Tax Deducted at Source) applies to most transactions. These rules have pushed significant trading activity offshore.

Sitharaman disclosed that tax officials identified ₹888.82 crore (approximately $99 million) in unreported cryptocurrency income during search and seizure operations. The Enforcement Directorate has attached or seized ₹4,189.89 crore (approximately $466 million) under the Prevention of Money Laundering Act (PMLA). Additionally, authorities have arrested 29 individuals and filed 22 prosecution complaints.

Key Findings:

• TDS non-compliance: ₹39.8 Cr • Undisclosed income: ₹125.79 Cr • Search and seizure haul: ₹888.82 Cr

The government also identified 3 crypto exchanges not following TDS rules for Indian users.

Meanwhile, a certain major compliance platform reopened registrations in India this week. The exchange had been forced to wind down operations in 2023 following UPI payment obstacles. It is now allowing crypto-to-crypto trades and plans to restore fiat on-ramps in 2026, pending approval from the Financial Intelligence Unit.