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India Soft-pedals On Cryptocurrency Ban, Request Crypto Companies To Now Pay Tax

BY DAYO ADESULU

In what looks like a new dawn of cryptocurrency acceptability in India, its Ministry of Corporate Affairs (MCA) has mandated companies dealing in crypto to declare it as part of their asset during the financial yearly report from tomorrow April 1.

This unarguably puts an end to the ban of cryptocurrency in India as it has now been accepted as a store of value.

Indian MCA had last week issued a notification to companies to disclose crypto trading and investments during the 2021/2022 financial year.

Ministry of Corporate Affairs said the mandate will kick off during India’s financial year 2021-22 begins which is April 1.

The statement: ”Every company which has traded or invested in cryptocurrency or virtual currency during the financial year must disclose profit or loss on transactions involving cryptocurrency or virtual currency,”

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it added that it must disclose “amount of currency held as at the reporting date,” and “deposits or advances from any person for the purpose of trading or investing in cryptocurrency or virtual currency.”

Bitcoin.com reports that the Crypto community in India lauded the development, adding that it would legitimize cryptocurrency transactions in the country.

. In his reaction, local media reports that Monark Modi, founder and CEO of Indian cryptocurrency exchange Bitex, said policy innovation on crypto will definitely put investors at ease.

He said: “This is a definite endorsement, and it is good to see that India is not falling behind the global cryptocurrency race.

”Bringing regulation that provides safety to investors, factors taxation and fosters cryptocurrency as an alternate investment class will be the right step ahead.”erve Bank of India (RBI), says that it has voiced some major concerns regarding cryptocurrencies to the government. Nonetheless, RBI Governor Shaktikanta Das believes that the government and the central bank are in agreement on cryptocurrency.

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