Indian government ordered all companies to report cryptocurrency transactions to the regulator – Bits Media

The Ministry of Corporate Issues of India introduced amendments to the legislation, according to which Indian firms are required to report all transactions with cryptocurrencies.

The ministry introduced the appropriate
changes to the "Law on Companies" from 2013 of the year. According to updated provisions, State and private Indian firms, who invested in cryptocurrencies or traded them during the financial year, are obliged to provide income information and losses from these operations. Besides, firms must report the number of crypto assets, at their disposal at the date of reporting, as well as data on any deposits, included by customers of these companies for trading or investing in cryptocurrencies. Amendments will enter into force in early April, However, the legal status of cryptocurrencies in India remained uncertain.

Local media "pour oils into the fire", reporting, that India regulators intend to prevent the conduct of primary public placements (IPO) for companies, owning cryptocurrencies. Some IPO Indian organizers are forced to provide written confirmation, that they will destroy their digital assets, If the government prohibits cryptocurrencies. Information has recently appeared, that a bill is being prepared in India, prohibiting turnover, Storage and transfer of digital assets, Otherwise, cryptocurrency owners will face criminal liability.

Despite rumors about the inevitable and complete ban on digital assets in the country, The Minister of Finance of India said, That rumors are exaggerated, and the government adheres to a more balanced approach to the regulation of cryptocurrencies. Chairman of the Reserve Bank of India (RBI) Shakintite Das (Shaktikanta das) said, that the Central Bank and the Ministry of Finance adhere to the same views on cryptocurrencies.

"Digital currency of the Central Bank – This is one. Cryptocurrencies, which are traded in the open market, – This is completely different. India Bank and the Government are striving for financial stability. We have certain fears about cryptocurrencies, Therefore, you need to take measures, To protect you from possible problems ", – The chairman of RBI said.

Many participants in the cryptocurrency industry consider, that the government should not limit the access to Indian citizens to cryptocurrencies. for instance, Indian billionaire Nandan Nilekani (Nandan Nilekani) considers, that crypto assets should be considered as a new developing class of assets.