New Delhi: The Union Budget 2026–27 has unveiled the toughest and most clearly defined compliance framework yet for crypto assets in India. The government has announced that from April 1, 2026, failure to disclose crypto asset information on time will attract a daily penalty, while incorrect, incomplete or misleading reporting can invite fines of up to ₹5 lakh. The move directly impacts crypto investors, exchanges and digital asset platforms.
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What has changed?
Until now, crypto reporting in India suffered from loose standards and inconsistent practices across platforms. Under the new rule, entities legally required to furnish information will face a ₹200 per day penalty for delays—continuing until the required details are fully submitted. The message from the government is unambiguous: the era of “non-disclosure without consequences” is over.
High cost for wrong information:
If an individual or institution provides false or misleading details about crypto holdings or transactions, authorities can impose a penalty of up to ₹5 lakh. In effect, not only delays but also inaccurate reporting will now carry significant financial consequences.
Who does the rule apply to?
The framework is not limited to exchanges alone. It covers:
- Crypto exchanges
- Digital asset platforms
- Investors and entities that fall within the statutory reporting net
Why the crackdown?
The government aims to strengthen transparency, traceability and accountability in the crypto ecosystem. Divergent reporting standards across platforms had made supervision difficult. The new penalty regime is designed to plug these gaps and reduce risks such as money laundering and misuse of digital assets.
Industry view:
Experts from the digital asset sector acknowledge that compliance costs may rise in the short term, but argue that the measures could deliver long-term stability and credibility. Clear rules are expected to boost institutional confidence and bring crypto activity closer to mainstream financial reporting systems.
What should retail investors do?
- Maintain accurate records of crypto holdings
- Understand the reporting mechanisms of the platforms used
- Avoid hiding or delaying disclosures
- Ensure timely updates and filings
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
