India Will Regulate Cryptocurrency, Companies That Must Disclose Virtual Money Transaction Data

India to criminalize cryptocurrency ownership (Bitcoinist)

JAKARTA - Cryptocurrencies are starting to be widely used by individuals and companies from various parts of the world. This has led a number of countries to try to stem these digital money transactions, one of which is India.

India issued a policy to regulate cryptocurrency. The country, led by PM Narendra Modi, requires all companies in India to disclose their virtual money transaction data in the trial balance.

This means that companies in that country are obliged to disclose the amount of profit and loss they have experienced from cryptocurrency transactions. In addition, companies are also required to disclose the amount of cryptocurrency they have.

“This is a big step towards regulating crypto assets in India and will bring a lot of transparency in reporting or archiving crypto investments. This step will institutionalize the crypto assets in India and will take the Indian crypto industry to the next phase of growth", said CEO of BuyUcoin, Shivam Thakral as quoted by India Today.

India is rumored to have 7 million investors in cryptocurrencies with a value of USD 1 billion. Given a large number of people, the Indian government is having difficulty implementing a complete ban.

However, with the existence of a policy that requires various companies to report their cryptocurrency transactions and holdings on a regular basis, the Indian government is expected to be able to control them transparently and better.

"With this step, the government has ensured, that in a global scenario where giants like Tesla, Paypal are actively participating in the crypto domain, Indian companies are getting into the account, which is huge", said Cashaa CEO Kumar Gaurav.

The Indian government plans to enact a law to prohibit the ownership and transactions of cryptocurrencies. This information was leaked by one of India's top officials who said they would criminalize anyone using cryptocurrency as collected from Reuters.

On the other hand, the prohibition also cannot be called the right solution considering that this cryptocurrency is used massively by various citizens of the world. A number of banks in the US have also opened up to accept cryptocurrency transactions, one of which is the Morgan Stanley bank.

It is not yet known whether this measure will affect the value of India's own currency or not.