Intensified scrutiny of crypto transactions, the Enforcement Directorate (ED) has attached Rs 4,189.9 crore in crypto-linked proceeds of crime over the years, while the Income Tax department uncovered Rs 888.82 crore in undisclosed virtual digital assets (VDAs) income, minister of state for finance Pankaj Chaudhary told the Lok Sabha on Monday.
The probe agency has arrested 29 individuals, filed 22 prosecution complaints, and declared one accused a Fugitive Economic Offender—marking one of the most significant crackdowns on illicit activities involving VDAs in India.
CBDT intensifies scrutiny of crypto transactions
Parallelly, the Central Board of Direct Taxes (CBDT) has intensified scrutiny of crypto transactions. During search and seizure operations, the department detected undisclosed income amounting to Rs 888.82 crore from VDA dealings.
Further, the CBDT issued 44,057 communications to taxpayers who traded or invested in digital assets but failed to report these transactions in the mandatory Schedule VDA of their Income Tax Returns.
Chaudhary on VDAs in India
Chaudhary noted that VDAs remain unregulated in India, prompting the government to focus on capacity building within enforcement and tax agencies. The inclusion of crypto assets under PMLA aims to strengthen oversight, curb money laundering risks, and improve the traceability of transactions.
Highlighting the global nature of digital assets, the minister stressed that crypto regulation cannot be effective in isolation. Since crypto transactions transcend borders, strong international coordination, common standards, and uniform taxonomies are essential to prevent regulatory arbitrage and ensure financial stability.
The government, he added, continues to work closely with global bodies to assess risks and shape a comprehensive regulatory framework that balances innovation with robust safeguards.