While the legal status of cryptocurrencies in India remains uncertain, companies in the country that deal with virtual assets are now required to report their activities through accounts.
The new rule follows the changes made by the country’s Ministry of Trade and Industry to the third plan in the 2013 Norwegian Companies Act.
Indian companies, both public and private, that have invested in or traded cryptocurrencies during the fiscal year must report gains or losses, according to a document released on Wednesday.
Other information related to cryptocurrency includes the amount of cryptocurrency the company has owned since the date of the balance sheet, as well as additional deposits made by clients for the purpose of investing or trading the cryptocurrency.
The 2013 amendments to the Companies Act will go into effect in early April.
Firms needing to disclose information about their cryptocurrencies are monitoring reports that Indian securities regulators have been anxious to prevent IPO organizers from investing in the cryptocurrency market.
In fact, some IPO regulators are already making claims that they would liquidate all of their virtual currency holdings if the government banned cryptocurrencies.
Meanwhile, despite rumors of an imminent cryptocurrency ban in India, the country’s finance minister said the government supports a more balanced approach to dealing with cryptocurrencies.
According to a report by The Economic Times, Shaktikanta Das, the governor of the Reserve Bank of India, said that both RBI and Treasury have the same opinions about cryptocurrencies.
In a comment to the RBI and Treasury, Das said in his speech to the Times Network India Economic Conclave:
“Central bank digital currency is one thing. The cryptocurrencies that are trading in the market are very different. Both the Reserve Bank of India and the government are committed to economic stability. We have highlighted some concerns about trading these cryptocurrencies in the market. We have contacted the government about some serious issues.”
Some industry stakeholders continue to warn of a complete ban on cryptocurrencies in India. Meanwhile, the Indian Parliament postponed his death on Thursday without making any encryption proposals during the session.