Prashant Sharma | Infinilex ⚖️

@GaetanJansseune It appears, in about 5 years’ time, the entire world will have synonymous regulations around reporting of virtual assets and it will be a great time for compliance professionals advising affected entities.

@prashant__sha EU went first with DAC8 — same concept as CARF but already live since Jan 1, 2026. The biggest surprise? Most investors didn't prepare. In Belgium I'm seeing clients who assumed exchanges wouldn't share data. They were wrong. India should watch the EU rollout closely.

India is adopting the OECD Crypto Asset Reporting Framework (CARF) by April, 2027. That means Binance, Bybit or any other off-shore exchange will automatically share Indian user transaction data with the IT department in India.

The under-discussed exposure: Schedule FA + PMLA. If you are an Indian resident holding crypto on an offshore exchange or in a foreign-controlled wallet, you must disclose it under Schedule FA, even with zero income. Non-disclosure triggers the PMLA: 30% tax + 90% penalty + minimum INR 10 lakh penalty per asset.

Section 285BAA of the Income Tax Act 2025 is already live, effective 1 April 2026. Crypto exchanges must report customer transactions in a standardised format. Combined with the existing 1% TDS under Section 194S and Schedule VDA in the ITR, the domestic data trail is comprehensive. Three reporting layers, one taxpayer, you.

Restrict by jurisdiction at launch. Use IP-blocking, KYC-gated participation, and transfer restrictions to align the token's actual reach with the regimes you have prepared for. A token marketed globally without jurisdictional architecture is a regulatory exposure in every jurisdiction. DM me or @Infinilex if you are launching a token and your jurisdictional strategy is unclear. infinilex.io

UAE (VARA / DFSA / FSRA): VARA classifies virtual assets by function, DFSA recognises Investment Tokens and Crypto Tokens with distinct regimes, and FSRA in ADGM has its own categorisation. A token can be a "regulated investment" in DIFC and an "exempt utility" in mainland Dubai under VARA.

A global token launch is a great milestone, but it is also an invitation to global regulatory scrutiny, everywhere they launched, all at once. How the jurisdictions treat tokens...

The builders who will survive the next wave of DeFi regulation are the ones who got legal security before they launch, instead of waiting for the first enforcement action. Decentralisation is a technical property. Regulatory exposure is a legal one. Building a DeFi protocol? DM me or @Infinilex before you launch if you want a quick run-through of your exposure.

Who is liable when there is no intermediary? Under FATF guidance, front-end operators, developers who retain admin keys, and governance token holders with material control over protocol parameters can all be treated as VASPs or responsible parties. "The protocol runs itself" is not a valid legal defence available to someone with a multisig key and a token allocation.

DeFi protocols keep arguing they are not regulated because there is no intermediary. Regulators in the UAE, the EU and India are answering that argument conclusively, and they are not agreeing with the protocol.

@neuralunlock I believe this Kalshi and Polymarket are expanding into perps as more of a geographical play than it is just expanding into an everything exchange. The intent is to cater to their major markets instead of influencing consumer behaviour.

Kalshi and Polymarket are both successful platforms, but I don’t understand why they are expanding into perps. How are they going to compete with Hyperliquid here? Intent matters. When you go to one of these venues, you’re going there to bet on sports or political events. It’s very difficult to change customer behavior. Look at Coinbase: they launched perps and it was underwhelming. Nobody goes to Coinbase to trade perps. They go there to on-ramp and buy spot. Everyone wants to be the everything exchange but most fail to convert user preferences.

Founders with Indian exposure: Are you ready for automatic crypto data sharing with the UAE under CARF/CRS 2.0 starting this year?

@0xvsr @MIDAODS @Infinilex Hi @0xvsr something we can help with? infinilex.io/web3

@MIDAODS @prashant__sha @Infinilex Just checking on this, was looking for info about Midao and the site is throwing these.

A DAO without a legal wrapper is not just anonymous or autonomous; it is an invitation for unlimited personal liabilities and hindrances to entering into contracts and operating bank accounts. Let me explain...

India VDA Tax & Reporting 2026: Founders Guide ⚠️ Starting April 1, your AIS will auto-fill with every crypto transaction, airdrop, staking reward & wallet activity. 30% flat tax. No loss set-off. 1% TDS. ₹200/day + ₹50k penalties for mismatches. Most Indian Web3 founders are one data glitch away from notices. Founders launching tokens, RWAs, DeFi or DAOs with India exposure → restructure across India-UAE-US before the flood hits. DM me or visit infinilex.io/web3 for a 15-min compliance strategy call. We handle the full corridor in-house. What’s your biggest 2026 worry?

The penalty regime now has teeth enough to tear off flesh: INR 200 per day for non-filing of VDA statements, INR 50,000 flat for incorrect reporting, and under-reporting penalties of 50–200% of tax payable.

Three situations that create the most exposure: - Trading on offshore or DEX platforms and not reporting those gains. No TDS deduction does not mean no tax liability. - Treating airdrops, staking rewards, and mining income as non-taxable. They are not. - Using crypto for business payments without recording the transfer as a taxable event at the time of use.

From April 1, 2026, Indian crypto exchanges are required to share user transaction data directly with the Income Tax Department. If you have been concealing your virtual digital assets gains in your ITR, it is a disaster waiting to happen.