The central government has made it mandatory for companies to show details of transactions made in cryptocurrencies.
The Central Government has amended the Companies Act, 2013 to get the details of transactions and investments of Indian companies in cryptocurrency. Now companies have to show the transactions related to cryptocurrency, profit with holding and loss (Profit & Loss) in their balance sheet. This provision will come into force from 1 April 2021.
Rules amended in Company Act 2013
This rule of the central government will bring transparency in reporting and filing of crypto investments. Also, the government will be able to know which company has how many cryptocurrencies and how much of its transactions have been done. An amendment to the third schedule of the Companies Act 2013 by the government mandated that companies display cryptocurrency or virtual currency related transactions, profits and losses with holdings (Profit & Loss) Will happen. This provision will come into force from 1 April 2021.
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The Modi government is enacting a law to regulate cryptocurrency on the one hand. At the same time, this step will help the center in collecting every information related to cryptocurrency. This will enable the government to know how companies are trading in cryptocurrencies. About 1 crore people in India invest in cryptocurrency. At the same time, the government does not have any information about how many companies have invested in it or are trading and holding it. This step of the government will get its details. It is being said that this step can strengthen the institutional adaptation of crypto assets. Let people know that the people of India have invested more than $ 1.5 billion in crypto assets.