• India found that fewer than 25% of 645,000 people who traded cryptocurrency reported those transactions on tax returns.
• Officials estimate about 39 million crypto traders held more than US$2.1 billion in digital assets at the end of May.
• The findings may strengthen tax enforcement as regulators continue reviewing the country’s cryptocurrency policy.

India’s tax department found that fewer than a quarter of 645,000 people who traded cryptocurrency during the year ended March 2023 reported those transactions on their tax returns, highlighting potential gaps in tax compliance.

Government documents cited by Reuters estimated that about 39 million people in India held more than US$2.1 billion in cryptocurrency at the end of May, while officials…