India, Feb. 1 -- While the Union Budget 2026-27 did not bring up cryptocurrencies and virtual digital assets as a prominent area of focus, Nirmala Sitharaman proposed increasing the reporting compliance burden for crypto startups, and a related penalty framework for non-compliance.

Under the proposals, entities dealing in cryptocurrencies and virtual assets could face a penalty of INR 200 per day for non-furnishing of transaction statements and a flat INR 50,000 for furnishing inaccurate particulars or failing to correct them.

The FM said the move was meant "to ensure compliance with section 509 of the Income-tax Act, 2025 and create a deterrence for non-furnishing of statements or furnishing inaccurate information in respect of crypto ...