Home Crypto Events Cryptocurrency Transactions Should be Disclosed From April 01, 2021 in India

Cryptocurrency Transactions Should be Disclosed From April 01, 2021 in India

Crypto India 2021

The Indian Ministry of Corporate Affairs (MCA) have issued a notification in the last week requiring companies to disclose their crypto trading and investments during the financial year. These disclosures are made mandatory beginning April 1, 2021.  The Financial year 2021-22 begins on April 01, 2021.

Reportedly, every company which “has traded or invested in cryptocurrency or virtual currency during the financial year” should disclose “profit or loss on transactions involving cryptocurrency or virtual currency,” “amount of currency held as at the reporting date,” and “deposits or advances from any person for the purpose of trading or investing in cryptocurrency or virtual currency.”

The Indian crypto companies are welcoming the new requirements from the government with the belief that it legitimizes cryptocurrency transactions.

However, there was a recent speculation around ban, and this notification of permitting cryptocurrencies to be a part of accounting practices will surely put investors at ease.  Thus, investors need not any longer worry about taxation.

He further stated: “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.”

A cryptocurrency bill is long expected. The Indian Financial Minister has given some information about what might be the contents in the expected crypto bill.  It just looks like the government might not completely ban cryptocurrencies.  They are going to take a calculated approach towards cryptocurrencies. They might agree about cryptocurrencies with some rules in place.

Cryptocurrencies are already becoming an extension of what users do every day.  They are a part of making payments possible across the world.

Of late, several Indian cryptocurrency exchanges are offering comprehensive sets of solutions to address concerns about government and officials when it comes to the transactions in the cryptocurrency industry.

All the companies should now disclose in their statutory financial filings to the Registrar of Companies any profit or loss on transactions, which consists of cryptocurrencies.  The amount of cryptocurrency which is held on the reporting date, and any deposits or advances, which has been received from anyone for the purpose of investing in cryptocurrencies or virtual currencies, should also be disclosed.

Setting disclosure requirements is a major step in the process of regulating crypto assets in India.  There is a lot of waiting for positive regulatory guidelines from the Finance Ministry and RBI for more clarity regarding the crypto regulation in India.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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