INSIGHT: The CLARITY Act is unlikely to clear the process in time for a July 4 deadline, according to Eleanor Terrett.

India's Central Board of Direct Taxes (CBDT) has intensified scrutiny of virtual digital asset (VDA) activity, issuing more than 44,000 communications to taxpayers who traded or invested in crypto but did not disclose those transactions in their Income Tax Returns. The CBDT said it has also detected about Rs 888.82 crore (around $104 million) in undisclosed VDA-linked income, identified through search-and-seizure actions and data analytics. The effort is being carried out under the CBDT's NUDGE initiative (Non-Intrusive Usage of Data to Guide and Enable), which uses third-party information and cross-checking of transaction data obtained from crypto exchanges. Since the introduction of a 1% Tax Deducted at Source (TDS) on VDA transfers under Section 194S, trades executed on compliant platforms generate a reportable trail that feeds into the Annual Information Statement, giving authorities a consolidated view of taxpayer activity. The review is not limited to recent transactions. Reassessment notices under Section 148A have been issued for activity going back to FY 2021-22, signaling that the department is examining prior years to identify gaps. The CBDT's push runs alongside broader enforcement actions. The Enforcement Directorate is conducting parallel probes into alleged VDA-related money laundering and has attached Rs 4,189.89 crore in linked proceeds. India's current crypto tax framework was laid out in the 2022 Union Budget, which introduced a flat 30% tax on gains from VDAs beginning FY 2022-23. Losses cannot be set off against gains, preventing investors from reducing taxable profits by netting losing trades. Combined with the 1% TDS, the regime is among the more stringent globally, with TDS serving both as an upfront collection mechanism and a data tool enabling large-scale compliance drives. For investors, the message is that VDA gains are now firmly within the tax net. Traders who have been reporting and paying the 30% tax may see little change, while those who underreported or failed to report face reassessments, penalties, and, in more serious cases, prosecution.

According to ME News, India is set to tighten compliance obligations for crypto investors in the 2026 tax filing season, with stricter reporting and enforcement even though the core tax framework remains broadly unchanged. The tougher rules increase the stakes for mistakes or omissions in filings. India's new Income Tax Act (2025) takes effect on April 1, 2026, replacing the 1961 law. For the FY202526 tax year, cryptocurrency assets classified as virtual digital assets (VDA) will continue to be reported under the existing regime, but the mechanics of reporting are being sharpened. A key change is to Schedule VDA: investors must disclose activity on a per-transaction basis rather than simply reporting net gains. This requires itemized records for every trade, exchange, and disposal. For taxpayers using multiple platforms, DeFi protocols, or multiple wallets, maintaining consistent and complete data across accounts becomes a major compliance hurdle. Analysts warn that failing to report even a single crypto trade or exchange could prompt a compliance review, as regulators step up data-matching and verification against on-chain information and exchange records. (Source: ODAILY)

India's 2026 crypto tax season is unfolding under tighter scrutiny, The Economic Times reported. Gains on virtual digital assets (VDAs) continue to be taxed at 30%, with a 1% tax deducted at source (TDS) applying to eligible transfers. Investors are required to report every trade, swap and disposal under Schedule VDA. The report said crypto exchanges, custodians and wallet providers must now provide user-level transaction data to the Income Tax Department, enabling automated cross-checks against investor filings. Authorities have issued more than 44,000 notices linked to VDA activity and have identified over Rs 888 crore ($104 million) in undisclosed VDA income.

ChainCatcher reports that India is tightening oversight of crypto taxation, raising the compliance bar for investors as the 2026 filing season approaches. Under current rules, profits from virtual digital assets are taxed at a flat 30% rate, and a 1% tax deducted at source (TDS) applies to transactions above the prescribed threshold. Losses cannot be netted across different assets. While the new Income Tax Act (2025) takes effect on April 1, 2026, the broad tax treatment of crypto remains largely intact. What is changing is enforcement and reporting expectations. Taxpayers must fill out the dedicated Schedule VDA on ITR2 or ITR3 and keep granular, transaction-by-transaction documentation covering trades, swaps, transfers and settlements, rather than relying only on consolidated profit figures. The report says Indian tax authorities will obtain user-level transaction data directly from exchanges, custodians and wallet providers, then automatically match it against filed returns. Any mismatch may be flagged and escalated for scrutiny. Authorities have issued more than 44,000 notices and identified about INR 88.8 billion (roughly USD 930 million) in unreported virtual asset income. Regulators are also expanding surveillance capabilities by combining on-chain analytics with international data-sharing channels. From 2027, India plans to align with the OECD Crypto-Asset Reporting Framework, enabling automatic exchange of cross-border crypto transaction data and increasing visibility into overseas exchange holdings. Common filing issues highlighted include using the wrong return form, failing to report airdrop or staking income, and not properly reconciling 1% TDS records. The report argues that crypto tax compliance in India is moving from after-the-fact declarations to near real-time traceability, making year-round recordkeeping essential.

India is set to raise the bar for crypto tax compliance in the 2026 filing season, with tougher reporting rules and stricter enforcement that increase the cost of mistakes, according to The Times of India. The country's new Income Tax Act (2025) takes effect on April 1, 2026, replacing the Income Tax Act of 1961. For the FY2025–26 assessment, crypto assets classified as Virtual Digital Assets (VDA) will continue to be reported under the existing framework, but with more demanding operational requirements. A key change is in Schedule VDA, which shifts reporting to a per-transaction basis rather than allowing taxpayers to rely on a high-level summary of net gains. Investors will need to maintain and disclose detailed records for every trade, conversion, and disposal. The burden is expected to be heavier for users active across multiple exchanges, DeFi protocols, or wallets, where reconciling records and keeping consistent data becomes more complex. Analysts note that incomplete disclosure of any trade or transfer could prompt a compliance review as authorities push for tighter data matching and verification between on-chain activity and exchange records.

ME News reported that on June 14 (UTC+8), the U.S. Commodity Futures Trading Commission (CFTC) disclosed on its website that the Division of Market Oversight has issued a No-Action Letter allowing Designated Contract Markets (DCMs) to convert existing digital commodity perpetual-style futures into digital commodity perpetual futures by removing the expiration date. The relief is conditioned on meeting investor-protection and procedural requirements, including soliciting feedback from position holders, providing advance notice and an opportunity to exit positions, making appropriate risk disclosures, and leaving all other material contract terms unchanged. DCMs are also required to file amended documentation and certify compliance with applicable regulations. The no-action relief remains in effect through June 30, 2026. (Source: Foresight News)

June 14 — A filing with the U.S. Securities and Exchange Commission (SEC) shows the agency has approved NYSE Arca's proposed rule change, clearing the way for the listing and trading of the T. Rowe Price Active Crypto ETF. The fund is an actively managed cryptocurrency ETF designed to invest in a basket of digital assets that meet its definition of "qualified assets." It will use a cryptocurrency index as a performance benchmark, without seeking to track or replicate the index. According to the filing, the portfolio is expected to hold roughly 5 to 15 cryptocurrencies. Tokens listed as examples include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE) and Chainlink (LINK). The filing also notes that under normal conditions the ETF may hold stablecoins, primarily USDC, as "tokenized cash" to pay fees and support portfolio rebalancing, but not as an investment allocation. The approval materials highlight that the product must comply with exchange requirements covering market-manipulation safeguards, disclosures, liquidity standards and risk management. They also call for information firewalls and position-transparency mechanisms aimed at maintaining market integrity and preventing misuse of material nonpublic information. Market observers view the decision as another step in broadening how crypto exposure is offered within traditional finance, bringing "actively managed multi-crypto ETFs" further into the set of tradable products under mainstream regulatory oversight.

T. Rowe Price's actively managed multi-asset cryptocurrency ETF has received approval from the U.S. Securities and Exchange Commission (SEC), clearing a key hurdle toward a NYSE Arca listing. According to ME News, the SEC signed off on June 12, 2026, and the update was reported on June 14 (UTC+8). Trading has yet to begin, but the fund is moving closer to being made available to investors. The ETF is structured to allocate across 5 to 15 cryptoassets. Draft documents indicate exposure to major tokens such as Bitcoin (BTC), Ethereum (ETH), Solana and XRP, alongside higher-volatility names including Dogecoin (DOGE) and Shiba Inu (SHIB), underscoring an approach aimed at a broader digital-asset mix. The review timeline accelerated in April 2026, when T. Rowe Price filed several revised versions. The SEC ultimately approved the second amendment on June 12, a development seen by some as increasing regulatory openness to multi-asset crypto ETF structures. Analysts say a successful NYSE Arca listing could widen compliant, diversified crypto exposure for institutional investors and serve as a reference point for future actively managed multi-coin crypto ETFs. (Source: ODAILY)