TDS on Crypto: What It Is and How It Affects Your Crypto Holdings

When you trade or earn cryptocurrency, TDS on crypto, a tax deduction at source applied to crypto transactions by governments to track income and prevent evasion. Also known as tax withheld at source, it’s no longer just a concept in tax manuals—it’s now part of how you interact with exchanges, earn staking rewards, or even get paid in crypto. Countries like India, the UK, and Australia have started requiring exchanges or platforms to withhold a percentage of your gains before you even see them. This isn’t about punishing users—it’s about closing the gap between traditional finance and crypto, where cash used to flow unseen.

TDS on crypto directly connects to crypto tax, the legal obligation to report and pay taxes on cryptocurrency gains, income, or swaps. If you bought Bitcoin at $30K and sold it at $60K, the profit is taxable. But now, with TDS, that tax is taken out upfront—sometimes 1% or more—before the money hits your wallet. That means you might not get the full amount you expected. It also means you can’t ignore taxes anymore. Even if you use a non-KYC exchange, if you later cash out to a bank account, TDS records from other platforms will show up in your financial trail. This isn’t speculation—it’s enforcement. In 2024, India collected over $1.2 billion in crypto-related TDS within just six months.

Related to this is crypto compliance, the set of rules and procedures users and platforms must follow to meet government reporting and withholding requirements. It’s not just about filling out forms. It’s about understanding when TDS applies: Is it on trades? On staking? On airdrops? On P2P sales? The answer varies by country. In some places, even receiving crypto as payment for freelance work triggers TDS. In others, only fiat-to-crypto swaps do. This is why so many posts here focus on exchanges like Tidex, Asproex, and MaskEX—because their compliance policies directly affect whether TDS is applied to your trades. Platforms that don’t follow TDS rules are either shut down (like PaintSwap) or flagged as risky (like Serenity). You can’t afford to pick exchanges based on fees alone anymore.

And it’s not just about avoiding penalties. TDS changes how you plan. If you’re holding a token like DES or NRV, and you plan to sell, you need to know: Will TDS be taken? How much? Can you claim it back? Some users in Bolivia, for example, use stablecoins to bypass local restrictions—but even there, TDS-like reporting is creeping in through international exchanges. The same goes for users in Hong Kong, where new crypto laws in 2025 require exchanges to report all transactions over $10,000. TDS isn’t going away. It’s becoming the new normal.

What you’ll find in the posts below isn’t just a list of broken projects or scam tokens. It’s a map of how TDS and crypto compliance are shaping the real-world landscape of digital assets. From the ghosted NFTP airdrop to the vanished Tidex exchange, every example shows how regulatory pressure changes what’s possible—and what’s safe. You’ll see how users in Ukraine and India adapt, how platforms like Asproex survive by staying compliant, and why fake airdrops like FAN8 and YAE are more than just scams—they’re symptoms of a system under tightening control. This isn’t theory. It’s your money. And you need to know how it’s being tracked.