Indian authorities are cracking down on crypto traders who utilize peer-to-peer (P2P) platforms. The Financial Intelligence Unit (FIU) has intensified its efforts against these entities, resulting in numerous income tax notices being issued to individuals involved in such transactions. 78% tax penalties have been imposed on Indian crypto traders for P2P transactions without buyer KYC information recently. A trader sold cryptocurrencies worth ₹98,500 through a P2P transaction on a centralized exchange and incurred a profit of ₹1,500 before receiving an income tax notice demanding payment of Rs 78,000 in penalties. 3 years later he received this substantial penalty due to the lack of buyer KYC details.