Starting today, April 1, companies in India have to disclose crypto holdings and transactions in their financial statements. According to Business Insider India, citing the note from the Ministry of Corporate Affairs (MCA), companies will have to disclose their crypto holdings, profits, and losses on transactions involving crypto. They also have to disclose any deposits or advances the company received from anyone trading or investing in crypto.
According to the source, the decision of the government to issue the mandate was welcomed by experts in the industry. That is because a step to regulating cryptocurrency transactions could provide an alternative solution to the full ban on crypto.
The Indian government has been discussing the introduction of a bill to ban cryptocurrencies. In particular, the ban would prohibit any activities with crypto such as holding, buying, selling, mining, and so on. Those violating the rules would receive a fine or up to 10 years imprisonment, The Entrepreneur writes.
Despite the possibility of a ban, cryptocurrencies are popular in India. The country’s largest crypto exchange WazirX has a 24-hour trading volume of over $97 million at the time of writing, per CoinMarketCap.com data. In addition, cryptocurrency exchange Coinbase has recently announced setting up operations in India.