The Ministry of Corporate Affairs on Thursday amended Schedule III of the Companies Act 2013 to require listed and private companies to disclose their holdings of cryptocurrencies and other activities using digital currencies.
Starting from the next fiscal year (April 1), Indian companies will have to disclose their cryptocurrency transactions, according to the published communique. The companies must disclose "gains and losses related to transactions involving cryptocurrencies or virtual currencies," "the amount of currency held as of the reporting date," and "any deposits or advances made by anyone to trade or invest in cryptocurrencies/virtual currencies." These crypto transactions must be reported in the income statement and balance sheet.
While no Indian company has yet disclosed cryptocurrency investments, many listed companies in the US and Europe have made significant investments in digital currencies, which could prompt the Indian government to enact such laws.
India amends Companies Law to make it mandatory for companies to disclose their cryptocurrency holdings
Meanwhile, despite speculation that India is on the verge of a total ban on cryptocurrencies, the country's finance minister said the government prefers a more precise approach to dealing with cryptocurrencies. Shaktikanta Das, governor of the Reserve Bank of India, said the RBI and the finance ministry share the same views on cryptocurrencies.
"A central bank's digital currency is not the same as a cryptocurrency traded on the market," he said. Both the RBI and the government are committed to financial stability. We have noticed some issues with these cryptocurrencies that are traded on the market."
In addition, some industry stakeholders have warned that a total ban on cryptocurrencies in India would not work.