Budget 2026: New Crypto Penalties for Non-Disclosure, Misreporting of Assets

• Finance Minister Nirmala Sitharaman announced new penalties for crypto reporting entities during her Budget speech on February 1, effective April 1, 2026.
• Crypto exchanges and investment platforms face a Rs 200 per day fine for non-furnishing of transaction details and Rs 50,000 for inaccurate information.
• Additional penalties include a maximum of Rs 100,000 for continued non-disclosure of crypto income statements and fines for failing to furnish audit reports.
• Punit Agarwal of KoinX clarified that these new penalties target platform-level reporting compliance, not individual investors, aiming for systemic transparency.
• Industry leaders like Edul Patel (Mudrex) and Sumit Gupta (CoinDCX) view these measures as a step towards strengthening compliance, transparency, and regulatory clarity in India's digital asset ecosystem.

Why It Matters: Budget 2026 introduces new penalties for crypto platforms to ensure compliance and transparency in digital asset reporting.