Indian government now requires companies to disclose cryptocurrency holdings
The Indian government has introduced new cryptocurrency disclosure rules. Companies that trade cryptocurrencies will be required to disclose their cryptocurrency holdings, among other disclosures, as part of their financial statements as of April 1.
New encryption disclosure requirements
India’s Ministry of Corporate Affairs (MCA) issued a notice last week that requires companies to disclose cryptocurrency trading and investments during the financial year. These disclosures will be required from April 1, which is when India’s 2021-22 fiscal year begins.
Any company that “has traded or invested in cryptocurrencies or virtual currency during the financial year” must disclose “gains or losses in transactions involving cryptocurrencies or virtual currency”, “amount of currency held on the date of the report” and “deposits or advances of any person for the purpose of trading or investing in cryptocurrencies or virtual currency. “
Cryptocurrency companies in India welcome the new government requirements, believing it legitimizes cryptocurrency transactions. Monark Modi, founder and CEO of Indian cryptocurrency exchange Bitex, was quoted by local media as reporting the following:
“In light of recent speculation about the ban, allowing cryptocurrencies to be part of accounting practices will definitely put investors at ease as they no longer have to worry about taxes.”
He added: “This is a definite endorsement, and it is good to see that India is not lagging behind in the global cryptocurrency race. Bringing in a regulation that provides security to investors, takes into account taxes and encourages cryptocurrency as an alternative investment class will be the right step. “
The Indian government is currently finalizing a cryptocurrency bill that was supposed to be introduced during the budget session of parliament. However, the session has ended and no encryption bill was presented.
The finance minister has given some clues as to what might be in the bill on encryption. He said that the government will not close all options and will take a calibrated position regarding cryptocurrency legislation. Meanwhile, the Central Bank, the Reserve Bank of India (RBI), says it has expressed some major concerns regarding cryptocurrencies to the government. Nonetheless, RBI Governor Shaktikanta Das believes that the government and the Central Bank are in agreement on the cryptocurrency.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.