Key Highlights
- The Enforcement Directorate has attached ₹4,190 crore in cryptocurrency-related cases and declared one accused a Fugitive Economic Offender.
- The CBDT identified around $106 million (₹888.82 crore) in undeclared income and issued 44,057 notices to non-compliant taxpayers.
- Authorities emphasize that cryptocurrencies remain largely unregulated, but enforcement is being strengthened with international coordination.
The Enforcement Directorate (ED) has attached proceeds of crime worth nearly $465 million (₹4,190 crore) in cryptocurrency-related cases under India’s anti-money laundering law, Parliament was informed on Monday.
In a major development, one accused involved in these cases has been declared a Fugitive Economic Offender, signaling the government’s increasing vigilance over digital assets.
Enforcement Directorate steps up actions
Minister of State for Finance Pankaj Chaudhary, in a written reply to the Lok Sabha, said the ED has investigated several cases involving crypto under the Prevention of Money Laundering Act (PMLA).
“The Enforcement Directorate has investigated several crypto-related cases under PMLA, attaching/seizing/freezing proceeds of crime worth ₹4,189.89 crore, arresting 29 persons, and filing 22 prosecution complaints. One accused has been declared a Fugitive Economic Offender,” Chaudhary said.
The government’s recent actions are some of the largest taken against cryptocurrencies in India. The government’s latest moves show that authorities are taking the misuse of cryptocurrencies for money laundering and other financial crimes very seriously.
Tax authorities intensify oversight of undeclared income
Working with the Enforcement Directorate, the Central Board of Direct Taxes (CBDT) has stepped up checks on cryptocurrency transactions. Officials are identifying undeclared income and issuing notices to ensure taxpayers report their virtual digital asset earnings accurately.
During search and seizure operations, the CBDT identified around $106 million (₹888.82 crore) in undisclosed income from virtual digital asset (VDA) transactions.
The ministry said that 44,057 communications have been sent to taxpayers who invested or traded in VDAs but failed to report these transactions in Schedule VDA of their Income Tax Returns. These measures aim to increase compliance and discourage underreporting of crypto earnings.
Unregulated market requires strong oversight
Chaudhary said that crypto assets in India are still mostly unregulated, which makes it harder to monitor and enforce the rules. Officials are working on building their capacity to better track and investigate transactions involving virtual digital assets.
“Crypto-assets are inherently borderless and require strong international coordination to prevent regulatory arbitrage,” he said. “Therefore, any regulatory framework for crypto assets can be effective only with significant international collaboration on the evaluation of the risks and benefits and the evaluation of common taxonomy and standards.”
Government signals tougher action ahead
With the rising popularity of cryptocurrencies among Indian investors, the government is sending a clear signal that digital assets will not be a safe avenue for unreported income or illicit financial activity.
The combined efforts of the ED and CBDT demonstrate that while cryptocurrencies may remain unregulated, authorities are committed to ensuring that misuse carries significant consequences.
Also Read: India Sees Surge in Crypto-Funded Gold & Narcotics Smuggling: DRI
