India’s tax authorities are launching a comprehensive investigation into cryptocurrency tax evasion, aiming to uncover undisclosed incomes and discrepancies in tax filings. The Central Board of Direct Taxes (CBDT), leading the crackdown, is working with the Income Tax Department to identify high-risk individuals holding unreported crypto assets. 2023 has seen significant focus on enforcing compliance through a program called NUDGE, encouraging voluntary disclosure before stricter enforcement measures are implemented. The investigation is based on comparing individual tax returns against crypto exchange data to uncover misreported or unreported holdings by traders, as highlighted by the CBDT. This crackdown is driving a shift in the financial industry as many traders turn to offshore exchanges, potentially impacting domestic liquidity and prompting regulatory changes. As India pushes for stricter crypto regulations, global trends indicate similar measures in other countries like the US and UK, suggesting future policies may impact the regulatory landscape for cryptocurrency.