From today onwards, crypto firms in India must report all cryptocurrency transactions to the Indian government. Effective from today, the new disclosure rule states that any company dealing in cryptocurrency will have to reveal their complete crypto holdings to the government. All this has to be disclosed as a part of their financial statements.
A state regulatory authority on corporate affairs in India, the Ministry of Corporate Affairs (MCA) stated that every firm that has invested or traded in virtual currency or cryptocurrency during the financial year is now bound to reveal total profit and losses, all cryptocurrency holdings and advances or deposits received from anyone investing or trading in cryptocurrencies.
India’s cryptocurrency firms are welcoming the latest MCA regulation. These firms believe that doing so will legitimize cryptocurrency transactions. It is also expressed that the proposed move signifies that the government is considering to regulate the industry instead of banning cryptocurrency in India.
This regulation by MCA comes at a time of legal ambiguity for cryptocurrencies in India. Earlier finance minister Nirmala Sitharaman indicated that the government is planning a balanced approach towards regulating cryptocurrency.
After the disclosure legislation came from MCA there came many competing theories as to what actual intentions the government has for cryptocurrency. Team efforts were made by the Crypto industry in India to counter the government’s attempt to ban crypto.
Reserve Bank of India immediately issued a warning to the netizens to aware of the risks of investing in cryptocurrencies. Despite that, the central bank continued to motivate banks in India to grasp blockchain technology. As of now, the Central Bank of India is exploring the chances of issuing a central bank digital currency backed by the Indian rupee.