Officials at the Ministry of Corporate Affairs processed an amendment to Schedule III of the Companies Act, 2013, requiring companies both public and private to disclose information about their digital currency holdings and dealings in other digital assets.
Once it is passed by parliament, the bill will give residents a six-month grace period to liquidate all their digital currencies.
The Internet and Mobile Association of India has issued a plea to government not to ban digital currencies, but to regulate instead, as a means to unlock the “considerable benefits” of the sector.
Finance Minister Nirmala Sitharaman assured that despite reports of government hostility against the industry, it will take a measured approach.
Reserve Bank of India Governor Shaktikanta Das said the central bank has “major concerns” regarding digital currencies.
India’s securities regulator has said firms will be expected to sell off any holdings in digital currency before going public with an IPO.
The measures would apply from the 2020-21 tax year, and are expected to be brought in by a circular, according to reports.
The ban will reportedly be enforced in phases, giving digital currency owners the opportunity to sell all their holdings.
The “Cryptocurrency and Regulation of Digital Currency Bill 2021” was proposed recently by the Indian government.
Minister Anurag Singh Thakur recently clarified the government’s position on blockchain technology, the development of a digital rupee and the use of digital currencies in India.
India’s digital currency industry faces an uncertain future, with a proposed draft bill threatening to impose a blanket ban on the entire industry.