Despite the Indian authority still unable to offer clarified legal status for crypto, it is now mandatory for local businesses dealing with digital assets to report their activities as part of their financial statements.
Specifically, the new law is reportedly enacted after changes were made by the nation’s Ministry of Corporate Affairs to Schedule III of the 2013 Companies Act.
As detailed in the paper published on March 24th, India-based companies, operating in both public and private sector, which have made investments or carried out trading in crypto throughout the financial year have to report their profits or losses.
Additional crypto-associated disclosures reportedly include the sum of crypto in possession of the firm as of reporting date, together with extra advance deposits created by clients, via investing in the crypto sphere.
As a matter of fact, a few IPO promoters are already reportedly releasing affidavits, claiming that they plan to conduct the liquidation of all their virtual currency holdings, should the authority not support crypto.
Meanwhile, regardless of rumours mentioning a blanket crypto ban throughout the nation, India’s finance minister reportedly shared that the government is studying a different method to handle crypto, one with extra calibration.
Shaktikanta Das, governor of the Reserve Bank of India, reportedly revealed that the RBI and the finance ministry have similar perspectives, regarding digital coins.
“Central bank digital currency is one thing. The cryptocurrencies which are traded in the market are something else. Both RBI and government are committed to financial stability. We have flagged certain concerns around these cryptocurrencies which are being traded in the market. We have flagged certain major concerns to the government.” Das reportedly remarked concerning the shared concerns by the RBI and finance ministry.