In a major move towards facilitating regulation of cryptocurrencies in India, Ministry of Company Affairs (MCA) has amended Companies Act 2013 yesterday.
The Budget session of the Parliament was adjourned today. So the expected "Cryptocurrency and Regulation of Official Digital Currency Bill, 2021" couldn't be tabled up in this session. Hence, we don't see any chance of Government passing the Bill for next few months.
But in another major development, Government has mandated Indian corporates to disclose and report their crypto holdings; Profits & Losses in crypto trading; and investments from investors for the purpose of trading or investing in cryptocurrencies in their Balance Sheets starting next fiscal year i.e. 1st April, 2021.
A clause from yesterday's announcement of MCA's Notification for amendment of Companies Act 2013 read:
With this step, Ministry of Company Affairs makes holding crypto assets by Indian companies official and permissible. Along with bringing transparency in reporting or filing of crypto assets hold by Indian companies, this mandate is expected to boost the adoption of cryptocurrency by Indian corporates.
Making crypto assets as part of standard accounting practices is certainly going to ease out ongoing panic wave in Indian crypto community and it also instills hopes for a positive crypto regulations by the Government soon.
Say bye, bye to crypto-ban-in-India!