The Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI) today welcomed the government’s move on making it mandatory for companies to disclose investments made in cryptocurrencies. Favouring the development, BACC of IAMAI stated it’s a move in the right direction that will bring greater transparency.
Indian companies will have to disclose cryptocurrency holdings from April 1 – industry insiders welcome decision. The disclosure will be a part of the financial statements of the company, aimed at giving a better picture of the company’s finances to the stakeholders. The timing of the MCA notification is important, since it comes at a juncture when there is ambiguity in terms of legality of cryptocurrencies in India.
The move opens the door for all Indian companies to have Crypto on their balance sheets. It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators. This would help in shaping the crypto-assets market, eventually leading to its growth. It is in a positive direction and would bring transparency, legitimacy, and structure to the industry," says Sohail Merchant, CEO, Pocketbits, a member of IAMAI’s Blockchain and Crypto Assets Council.
Sumit Gupta, CEO of CoinDCX, a Mumbai-based cryptocurrency exchange, said that the government's order that mandates companies to disclose their cryptocurrency holding is a "welcome move". A regulated environment is what the industry was "eagerly anticipating", he added. The move will "put investors at ease as they no longer have to be worried regarding taxation", Bitex CEO Monark Modi said.
