Indian tax authorities have expressed concern over the growing risks associated with cryptocurrency transactions through overseas exchanges and decentralized finance platforms (DeFi). In an official statement, agency officials emphasized that anonymity and lack of transparent regulation create the threat of unreported income that is difficult to track and tax.

According to experts, the volume of cryptocurrency transactions conducted through offshore platforms has grown by more than 40% over the past 12 months. At the same time, a significant portion of these transactions pass out of the sight of Indian tax authorities. Of particular concern is the DeFi sector, where users can transact directly, bypassing traditional financial institutions and national regulators.

"We have seen an increase in the number of cases where cryptocurrency proceeds are not declared and funds are withdrawn outside the country through DeFi protocols," said a tax official. The agency is strengthening cooperation with international organizations and developing new mechanisms for monitoring transactions to minimize the risks of tax evasion.

Indian authorities urge citizens to exercise caution when using foreign cryptocurrency exchanges and DeFi platforms, reminding of the responsibility to declare digital assets and comply with tax laws.