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India orders companies to reveal cryptocurrency holdings

Updated: Jul 25, 2024
Published: Mar 25, 2021
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An increasing number of companies are buying and holding cryptocurrencies. They see Bitcoin and other cryptocurrencies as a hedge against inflation and an excellent store of value. As such, governments are now turning attention to these companies and asking them to declare their crypto holdings.

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Companies in India ordered to disclose crypto holdings

The Indian government has ordered companies in the country to disclose their cryptocurrency holdings. This latest development comes due to recent amendments to India’s Companies Act. Companies will be required to include their crypto involvement in all public financial reporting.

The new regulation follows amendments made by the Ministry of Corporate Affairs to Schedule III of the 2013 Companies Act. The amendment document, which was published yesterday, pointed out that public and private Indian firms that have invested in cryptocurrencies during the financial year will have to report their profits or losses.

Companies will be required to add the amount of cryptocurrency they hold as of the reporting date and advance deposits made by customers for cryptocurrency investment or trading purposes. The new amendment will come into effect at the start of next month.

India’s cryptocurrency regulation remains unclear

India is one of the numerous countries with unclear cryptocurrency regulations. The government previously banned cryptocurrency trading, but the Supreme Court overturned the decision. However, they are planning to ban crypto-related activities again.

The country’s securities regulator is working on preventing promoters of IPO from investing in the cryptocurrency market. The Reserve Bank of India (RBI) is also studying the likely impact of the digital rupee on the country’s financial stability before deciding to issue it or not.

Despite the chaotic regulatory environment, Coinbase is working on establishing a presence in India and is already hiring staff to work remotely.

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