Indian Government Says Companies Must Disclose Crypto Holdings

The Indian government is amending current legislation to require companies to disclose cryptocurrency holdings in their financial statements.

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All companies will now have to disclose in their statutory financial filings to the RoC any profit or loss on transactions involving cryptocurrency, the amount of cryptocurrency held on the reporting date, and any deposits or advances received from anyone for the purpose of investing in cryptocurrencies or virtual currencies.

Some experts have said these disclosure requirements indicated the government is open to regulating cryptocurrencies instead of banning them.

The government’s new bill – Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 — aims to prohibit all private cryptocurrencies while setting the stage to roll out the legal framework for an “official digital currency”.

However, Union Finance Minister Nirmala Sitharaman has said the Centre will take a calibrated approach to cryptocurrencies and will not close the window on experimentation with cryptocurrencies.