India's tax authorities have raised concerns over the regulatory challenges posed by cryptocurrency transactions, as discussed in a recent parliamentary finance committee meeting. Offshore exchanges, private wallets, and DeFi tools complicate the tracking and identification of taxable income, while cross-border transactions involving multiple jurisdictions further increase enforcement complexity. Currently, India imposes a 30% tax on crypto asset gains and a 1% withholding tax on all transfers. However, the industry views these tax measures as facing significant challenges in fairness and feasibility due to the cautious regulatory stance.