Amid ambiguous regulations, crypto adoption continues to grow in India.
Indian Companies to Report Crypto Holdings
According to a recent amendment to India’s Companies Act, all companies are now required to report all their crypto or digital asset transactions in all public financial reporting.
The timing of this development is particularly important as India continues to oscillate in its stance toward cryptocurrencies. As recently reported by BTCManager, India’s Finance Minister made it clear that there would be no blanket ban on digital currencies in the world.
However, the development of companies required to disclose their digital asset holdings gives an impression that the Indian government is indeed contemplating regulating crypto assets in the country.
Per the official document published on March 24, all Indian companies, both public and private that have invested or traded digital assets during the 2020-21 financial year must disclose their profits or losses.
Notably, the document also highlights other crypto-related disclosures that must be made by Indian companies. These include the amount of digital assets held by a company as of the reporting date, and any additional advance deposits made by customers for crypto trading.
It is worthy of note the new crypto asset disclosure will come into effect from April 2021 onwards.
Commenting on the development, India-based tech lawyer Varun dubbed it “positive baby steps towards recognition [of crypto] as a separate asset class.”
The Uncertain Crypto Regulatory Climate in India
While the latest crypto-focused amendment comes as a little respite for crypto enthusiasts in India, there is a lot that still needs to be addressed pertaining to the emerging asset class.
According to a survey last year, the majority of Indians found a lack of awareness and bad rep associated with crypto as the biggest barriers to entry.
Similarly, in February, BTCManager reported how the Indian government was considering fast-tracking a cryptocurrency bill that could spell the beginning of some of the strictest cryptocurrency laws in the world.
Against that backdrop, another report emerged that claimed that India’s so-called impending crypto ban could also stretch to IPO promoters.
Conversely, earlier this month the Internet and Mobile Association of India (IAMAI) appealed to the government of India to regulated cryptocurrencies instead of imposing a blanket ban.