Indian Government has asked crypto companies operating in the country to disclose their transactional data and holdings. This action is mandatory for all organizations involved in crypto-related activities.
The move by the government is targeted at regulating cryptocurrencies and bringing more transparency regarding crypto investments.
The recent amendment in Schedule III of the Companies Act, 2013, has made it binding on the crypto companies to disclose the profit or loss on any transactions of cryptocurrencies. Besides, the record of holdings, details of deposits and advances to trade or invest also need to be made open.
Mr Pallav Narang, the partner of a big firm in India, said:
“The intent seems to include and regulate cryptocurrencies. While the authorities are preparing a regulatory framework, they are looking for information on how many companies are doing cryptocurrency trading or are holding them on their balance sheets,”
The leaders of cryptocurrency took this news as a positive gesture from the government.
“The government’s move is expected to boost the institutional adoption of crypto assets. We are eagerly waiting for positive regulatory guidelines from the finance ministry and the Reserve Bank of India for more clarity around crypto regulation in India. It is important to note that Indians have already invested around $1.5 billion into crypto assets, which clearly shows their intent towards embracing digital assets,” said the CEO of BuyUcoin.
Countries around the world are embracing bitcoin and cryptocurrencies. Recently, the CEO of Tesla announced that now customers can buy Tesla Vehicles using bitcoin.