The Indian government is exploring the idea of regulating digital currencies. On Thursday, the Ministry of Corporate Affairs (MCA) required all the companies in the country to report every virtual currency transaction in their balance sheet.
The directive demands firms to communicate the total quantity of their digital assets, including every profit and loss they have had through cryptocurrency transactions. They will also have to share details of deposits or advances from any person for the purpose of trading or investing in cryptocurrency or virtual currency.
“With this move, the government has ensured that in a global scenario wherein giants like Tesla, Paypal are actively participating in the crypto domain, the Indian companies are not falling back. Also, further to this, all the trading volumes by Indian companies go into accounts, which are huge,” Kumar Gaurav, Founder, and CEO of Cashaa stated.
This decision comes after many proposals from the government to regulate crypto in the country, and it is believed to generate more transparency between the government and investors.
“This is a major step towards regulating the crypto assets in India and will bring in a lot of transparency in reporting/filing of crypto investments. The move will boost institutional adoption of crypto assets in India and will take Indian crypto industry to the next phase of growth,” Shivam Thakral, CEO of BuyUcoin declared.
Even though it is yet unknown whether the Indian government will ban or regulate digital currencies, the amount of transactions is increasing. It is believed that over 8 million investors hold more than $1.4 billion in crypto investments.