Indian companies will now have to publish their crypto dealings from the next FY (Financial Year), which will start on April 1. India’s Ministry of Corporate Affairs amended Schedule III of the Companies Act, 2013, to mandate companies to reveal their cryptocurrency holdings and other activities employing digital currencies. As per the amendment, the companies must publish ‘profit or loss on transactions involving Cryptocurrency or Virtual Currency,’ ‘amount of currency held at the reporting date.’ It is also supposed to reveal ‘deposits or advances from any person for trading or investing in cryptocurrency/ virtual currency.’
Moreover, the companies must publish these crypto dealings in their profit and loss statements and balance sheets. The rules pertain to all Indian firms, involving private and publicly-listed companies. However, none of the Indian companies has exposed any cryptocurrency investments yet. Numerous public companies in the U.S. and Europe have invested massively in digital currencies, which might have inspired the Indian ministry to introduce before-mentioned reporting laws. Nevertheless, it will be fascinating to observe if the present Indian crypto exchanges have performed any digital currency investments.
Indian Government Plans on Banning Crypto
Recently, we reported that the Indian Government is contemplating blocking the IP (internet protocol) addresses of cryptocurrency exchanges as a component of its future ban on digital currencies. Nevertheless, it is unclear whether the governments intend to block only domestic crypto exchanges or international ones. Last month, there were reports that India’s SEBI (Securities Exchange Board of India) wants promoters of companies looking to go public to trade their cryptocurrency holdings before raising money.
The new laws appear as India plans to ban the use of cryptocurrency. The country’s Government was supposed to consider a crypto bill in the Budget session of Parliament, though it ended up not discussing it as the session ended today. As per the reports, the session was to terminate on April 8. But the plan changed because of assembly elections in some states. Crypto exchange executives are ready for the worst-case situation, a complete ban that would compel them to relocate. However, they are also confident that this won’t happen.
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