These days crypto prices are mooning and because people are paying more attention to cryptos. Not just users but govt are also trying to get involved and have more information about it from the users as well as companies. Exchanges in India are already following KYC norms to open an account so this information is available for govt to access but for the companies its not yet accessible.
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This week govt of India has issued a circular for the companies to disclose their holding of cryptocurrencies and made it mandatory. So now its not an option to keep the crypto holing private for companies and they have to share it with the govt.
The government has mandated all companies in India to disclose details related to dealing in cryptocurrencies in their balance sheets, as per a notification from the ministry of corporate affairs.
As of now, there is no such mechanism exist in India that can help govt to track this information so the only way they have is to ask companies to share the data. Probably once they have it with them then they can plan out things further for regulation because this will help them to know how much crypto holding is here in India.
This is not just for the holding but also for the trading so if the company has traded in crypto then also they have to provide the information and I find it a good move because if govt realizes that the holding is quite big in amount then its not easy for them to ignore. If we talk about the individual users in India then as per recent update by exchanges- they are getting lakhs of new registration every day and the situation is the same with all leading exchnages like wazirx, coindcx, bitbns, zepay, unocoin, etc.
A company that has traded or invested in the virtual tokens will have to disclose profit or loss on transactions involving a cryptocurrency, amount of currency held at the time of reporting, and details of any deposits or advances with any person for the purpose of trading or investing in the virtual tokens said the notification that has outlined the various amendments in Schedule III to the Companies Act, 2013.
Increased number of new user registrations and also the information submission by companies to the govt is good reason for positive. This is all because of the boom in the prices and bitcoin has crossed its market cap of 1 trillion USD itself and altcoins hold over 1 trillion of value as of date.
This has taken time but the growth is significant and it expected that this will grow even more so we can expect more govts to increase their interest and ask for various information since its all decentralized and they have no control over it.
Thank you.
