India has released one of its most detailed updates yet on enforcement actions in the crypto sector. New disclosures from the Ministry of Finance show that investigative agencies, tax authorities & compliance teams have significantly intensified monitoring of both platforms and individual traders.

The data covers seizures, arrests, tax demands, search operations & TDS compliance checks across multiple financial years. Together, the findings show a coordinated push to bring all crypto activity under India’s tax and reporting framework.

• ED’s Crypto Crackdown
• 44,057 Tax Notices to Crypto Traders
• Three Exchanges Flagged for TDS Issues
• Rising TDS Collections

ED’s Crypto Crackdown Reaches ₹4,190 Crore

India has released one of its most detailed enforcement updates for the crypto sector. According to the Ministry of Finance:

• ₹4,190 crore worth of assets frozen
• 29 individuals arrested
• 22 chargesheets filed

The Enforcement Directorate reports that most cases involve routing illicit money through digital assets, offshore platforms or unregistered intermediaries. Investigators said crypto rails were frequently used to obscure financial trails, prompting freezing orders to prevent further dissipation of funds.

The ministry noted that ED actions span scams, online fraud networks, illegal forex operations & cross-border laundering schemes involving virtual digital assets.

44,057 Income Tax Notices Sent to Crypto Traders

The Central Board of Direct Taxes has intensified scrutiny of individual traders. It confirmed sending 44,057 notices to users who did not report their crypto activity in income tax returns.

The notices follow updated policies for Virtual Digital Assets which include a 30 percent tax on gains and a mandatory one percent TDS on trades. Authorities matched data from exchanges with ITR filings to flag cases where trading volumes or income declarations did not align.

Officials expect additional notices as reconciliation systems improve.