Government mandates companies to disclose crypto investments, profit or loss made; startups hail move

India for the last year and a half has been under the grip of the Pandemic. Although through irregular lockdown, restrictions on transportation, and shrinkage of developmental activities, a recessionary phase has been initiated into the economy, it is safe to say that the green shoots of recovery are being witnessed. Moreover, companies are looking to recover and productivity is on the upward rise. In such a scenario, digital transactions have become the norm with people averse to go physically to the banking institutions and ask for the deposit amount or withdrawal amount to be charged. Moreover, all banking transactions are feasible to be made on the online platform through the digital transfer of money. This system of digitization in currency has brought about the inception of cryptocurrency or digitized currency.

Through the mandate passed by the Central Government over the amendments made through Schedule 3 of the Companies Act 2013, the Ministry of Corporate Affairs has brought about certain regulations. Among those regulations, the companies have been asked to reveal thief cryptocurrency investments, amount of deposits and withdrawals with cryptocurrency, and the amount of cryptocurrency balance they have with them which they would later utilize for future investment decisions.

There has been a positive sentiment generation in the economy and all the large institutional investors have encouraged the move. They have said that it would induce and encourage institutional cryptocurrency investment in the economy thereby generating a favorable investment growth environment in the economy. Through the financial reports which circulate in the market, there has been informed that more than $1.5 billion is regulated through the cryptocurrency mechanism in the economy. The investment in the cryptocurrency factor is generated by more than 70 million consumers in the economy. One of the cryptocurrencies that have emerged among the most popular ones is bitcoin.

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