Indian companies have to report all crypto transactions as of late while authorities still dabble with a potential ban on crypto as we reported in our crypto news before.
While the crypto landscape in India faces regulatory uncertainty, the government directed that Indian companies will have to disclose all details of their crypto transactions and holdings. According to the document published a few days ago, both public and private companies in India care to disclose details of all crypto activities during the financial year. The new rule came after an amendment made by the country’s Ministry of Corporate Affairs to Schedule III of the Companies Act in 2013.
The details include profits or losses made on the crypto investment or trading and crypto holdings of the reporting date. The companies will report advance payments made by clients with the goal of crypto investment or trading. In the meantime, stakeholders and observers commended that the latest developments could be beneficial for the crypto space in India. The co-founder and CEO of BuyUCoin crypto exchange, Shivam Thakral said:
“This a major step towards regulating the crypto assets in India and will bring in lot of transparency in reporting/filing of crypto investments. The move will boost institutional adoption of crypto assets in India and will take Indian crypto industry to the next phase of growth.”
The new rule came on the heels of speculation that the government plans to blanket ban the crypto industry and the lawmakers even proposed a bill that will ban all private cryptocurrencies. After the proposal, there were a few reports that the SBI will prohibit promoters of initial public offerings and IPO companies from raising funds. According to the comments, there were more fears that the IPO promoters will use the money raised for speculation.
With the uncertainties surrounding the crypto ban, India’s Finance Minister revealed that the government was not seeking to shut down the industry entirely but there were a few talks and negotiations with the RBI regarding crypto, adding that the government is adopting a calibrated approach. In the meantime, there were many comments from the crypto community calling the government to reconsider the negative crypto stance, saying that the government should not prohibit people from interacting with crypto.