Get All Access for $5/mo

Govt Mandates Companies To Disclose Crypto Dealings In Financial Statement All companies that have traded or invested in the virtual tokens will have to disclose profit or loss on transactions, amount of currency held and details of any deposits or advances with any person for the purpose of trading or investing in the virtual tokens

By Shipra Singh

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


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.

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.

The new rule will be effective from the upcoming financial year.

This is the first ever regulatory move that the government has taken with respect to cryptocurrencies.

"It is a welcome move as the amendment is a great stride towards a regulated environment which is what the industry has been eagerly anticipating," said Sumit Gupta, co-founder and CEO, CoinDCX, a crypto trading platform.

"Besides ushering in transparency for the system it will enhance the confidence of investors both retail and institutional especially in the wake of ongoing speculations around the cryptocurrency bill (sic)."

Gupta is referring to the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. While the contents of the bill are not in public domain yet, in February the finance ministry had hinted at a blanket ban on cryptocurrencies through the bill. Several media reports have confirmed the suspicion of a possible ban quoting senior officials in direct knowledge of the developments.

However, shifting from her original strict stance against the virtual tokens, last month FM Nirmala Sitharaman in a media interview said the government will ensure a window to allow all kinds of experiments in the crypto world before arriving at a conclusion. "There will be a very calibrated position (with regards to cryptocurrencies)," she said.

The ongoing speculations have not deterred investors from investing in cryptocurrencies such as bitcoin and ethereum as crypto exchanges have not reported a decline in trade volumes or major withdrawals.

Globally, major companies like Tesla, Square and MicroStrategy are holding bitcoin, the most popular cryptocurrency, on their balance sheets, whereas no major Indian institutional investor has come forward to publicly endorse cryptocurrencies.

Shipra Singh

Entrepreneur Staff

Freelance Journalist

Social Media

Five Indian film producers are exploring business beyond cinema

Very recently, the Ahmedabad-based ice cream brand Hocco raised funds, and among many, they have two angel investors from Bollywood: Farhan Akhtar and Ritesh Sidhwani. From Karan Johar to Alia Bhatt, Rana Daggubati to Ronnie Screwvala, there are film producers who are expanding their horizons as business visionaries by investing in different sectors. Here we take a look at some of such personalities.

Growth Strategies

AMD Confident About Increasing Market Share In India

The semiconductor company is positive about the business environment in India on the back of growing investments in data centers and AI, Cloud repatriation, as well as technology refresh taking place across companies on both server side and client devices

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.