Now, govt asks companies to declare cryptocurrency investments

The directive comes at a time when several reports indicate that the government is looking to ban decentralised digital currencies. However, the fact that it has asked companies to disclose cryptocurrency investments could be a positive development. Here is all you need to know:

The Ministry of Corporate Affairs (MCA) has asked all companies in the country to compulsorily disclose any holdings or dealings in cryptocurrency or any other virtual currency in their balance sheets. The directive comes at a time when several reports have indicated that the government is looking to ban decentralised digital currencies. But the recent directive is an indication that the government may not entirely ban cryptocurrencies and may only implement measures to regulate crypto trade in the country — a desperate appeal that many cryptocurrency exchanges in India have made recently. According to the latest amendments to Schedule III of the Companies Act, 2013, companies need to disclose profit or loss on transactions that involve cryptocurrency or any other form of virtual currency. In addition, the details of deposits or advances from any person/individual for investing or trading in cryptocurrencies have to be disclosed.