India is to make it mandatory new cryptocurrency disclosure rules by the rules of government. Any company that are dealing with cryptocurrency will have to disclose their holdings to government. Effective from today, they will do it as per the rule as part of their financial statement.
As per the MCA (Ministry of corporate affairs, every company whom traded the crypto in previous financial year must disclose all the holdings and total profit-loss statements. They must disclose if they have any deposits or advance received from anyone, on crypto.
Monark Modi, founder and CEO of Indian cryptocurrency exchange Bitex stated that “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,”
What are India’s new regulation signal?
In January 2021 Indian govt. introduced a bill where it proposed to make a ban on cryptocurrency in India. By the time they may introduce a new digital currency by the RBI as a future plan. On March, some reports along with top media portal Reuters claimed Crypto may be criminalised in India the by the govt. under the upcoming legislative bill.
So, now govt have decided to ask the companies for the discloser. As compared to the complete ban they may be effective. In India the market of crypto is very high. As per some report India is buying 1 out of 10 Bitcoins as assets. India is also the second largest traffic to peer-to-peer crypto trading.