Copy link
Increase text size
Decrease text size
Link copied

India to require crypto holdings disclosure by companies starting next month

India's crypto community welcomed the move as it hints at the government's intention to regulate crypto trading and investments.

Mumbai, India / Image by Walkerssk from Pixabay

Mon, 29 Mar 2021, 07:08 am UTC

India has put forth a new crypto disclosure requirement for companies dealing in cryptocurrencies. Starting next month, these firms will need to disclose their crypto holdings as part of their financial statements.

In a notification issued last week by the Indian Ministry of Corporate Affairs (MCA), companies will be required to disclose their cryptocurrency holdings and other crypto-related matters in their financial statements, according to Business Insider. The crypto disclosure requirement will start on April 1, which is also the start of the country’s financial year 2021-22.

The requirement of crypto disclosure as part of a company’s financial statements of the company is aimed at providing stakeholders a better picture of the company’s finances. The requirement covers all firms that engaged in cryptocurrency transactions.

The notification mentioned three items that must be included in the disclosure. A company needs to disclose “its cryptocurrency holdings as on the date of the financial statements, the total profit or loss on transactions involving these crypto or virtual currencies, and deposits or advances received from any person for the purpose of trading or investing in these currencies.”

India’s crypto firms welcome the new requirement by the government as it gives an air of legitimacy to cryptocurrency transactions. It also signals the government’s intent to regulate crypto trading and investments instead of banning them as suggested by previous reports.

“In light of the recent speculation around ban, allowing cryptocurrencies to be a part of accounting practices will definitely put investors at ease as they no longer have to be worried regarding taxation,” said Monark Modi, founder and CEO of Indian cryptocurrency exchange Bitex, according to Bitcoin.com. “This is a definite endorsement, and it is good to see that India is not falling behind the global cryptocurrency race. Bringing regulation that provides safety to investors, factors taxation, and fosters cryptocurrency as an alternate investment class will be the right step ahead .”

Sumit Gupta, co-founder and chief executive of the Mumbai-based exchange CoinDCX, also welcomed the development as a positive step towards regulation. ““It is a welcome move as the amendment is a great stride towards a regulated environment which is what the industry has been eagerly anticipating,” Gupta said. “Besides ushering in transparency for the system it will enhance the confidence of investors both retail and institutional especially in the wake of ongoing speculations around the cryptocurrency bill.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $59,974.00 (-0.83%)
  • Ethereum (eth) $2,143.82 (-0.78%)
  • Binance Coin (bnb) $475.72 (+0.59%)
  • XRP (xrp) $1.43 (+22.75%)
  • Tether (usdt) $0.999933 (+0.09%)
  • Bitcoin (btc) $59,974.00 (-0.83%)
Apr 10, 2021 (Saturday)
05:05
BTC Drops by 1.01% Within 5 Mins, Marking 60,780.09 USDT
04:20
BTC Surges by 1.02% Within 5 Mins, Marking 60,417.4 USDT
Apr 9, 2021 (Friday)
10:38
OKEx Lists GAL And TRA For Spot Trading
10:32
F2Pool To Stop Mining Services For ZEL
10:29
BTC Trading Above 58500 USDT
10:05
The9 Ltd., a Shanghai-based online game operator, signed a legally binding MoU on the purchase of Bitcoin mining machines.
10:00
BNB Tops List Of Crypto Net Inflow With $32.06 Mln In Past 18 Hours
09:55
Binance Has Completed Pundi X (NPXS) Token Migration & Redenomination Plan
09:42
Prepare For 'Uncertain Future Of Money' – US Intelligence Center
09:36
Huobi Futures To Add Trading Pairs For Cross Margin Mode Of USDT-Margined Swaps
08:16
Geth Releases v1.10.2
07:47
WWE Joins NFT Bandwagon, Announces Undertaker NFT
07:16
BuyUcoin Pilots Roxe Payment Node In India
06:51
NFT Tracking Metaverse Index (MVI) Launched By Index Coop
06:49
Canada's Leading Mortgage Brokerage Now Accepts Bitcoin, Ethereum, XRP, And Bitcoin Cash
06:32
Ethereum Hashrate Breaks 9.5 T/s
06:29
ENFTEE Opens Premium NFT Market S
06:28
Signal Under Fire Over MobileCoin Partnership
06:27
GBTC Holder Says Not Enough Being Done To Eliminate Discount On Shares — Proposes An Alternative Solution
06:25
Ripple’s Partnership With Novatti Goes Live
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft