Following the introduction of new crypto disclosure rules, cryptocurrency companies operating in India will have to disclose their crypto holdings and investments beginning April 1st. Such disclosures will thus become a part of the financial statements of all companies that deal in cryptocurrencies.
The announcement was made last week when the Indian Ministry of Corporate Affairs (MCA) issued a notification regarding the new disclosure rule. The country’s financial year 2021-2022 begins on April 1st, hence the above-mentioned date.
The new crypto disclosure requirements mandate all companies that have “traded or invested in cryptocurrency or virtual currency during the financial year” to disclose “profit or loss on transactions involving cryptocurrency or virtual currency,” “amount of currency held as at the reporting date,” as well as “deposits or advances from any person for the purpose of trading or investing in cryptocurrency or virtual currency.”
The new crypto rules introduced by the Indian government received a positive attitude from the crypto companies operating in the country as they believe cryptocurrency transactions are thus legitimized.
The founder and CEO of the Indian cryptocurrency exchange Bitex, Monark Modi, emphasized the benefits of these new disclosure requirements in a recent statement. He said 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.”
The crypto bill the Indian government is currently finalizing has made the headlines lately. Although the bill was expected to be introduced during the Budget session of parliament, such plans saw no fruition.
However, according to India’s finance minister, the said bill will not eliminate all options and the government’s position concerning the country’s crypto legislation will be a calibrated one. Even so, reports revealed that the Reserve Bank of India (RBI) had voiced some “major concerns” related to cryptocurrencies and that the RBI and the government agree as far as the crypto approach is concerned.
Source: Bitcoin.com