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Why Centre wants cryptocurrency holdings mandatorily disclosed in RoC filings?

Topics Covered: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

Why Centre wants cryptocurrency holdings mandatorily disclosed in RoC filings?


Context:

The corporate affairs ministry has announced companies will have to disclose any holding or dealings in cryptocurrencies or virtual currencies in their financial statements filed with the Registrar of Companies.

What does this inclusion indicate?

This is a major step towards regulating the crypto assets in India and will bring in a lot of transparency in reporting/filing of crypto investments. So far, the government was planning to ban them.

What are Cryptocurrencies?

Cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Examples: Bitcoin, Ethereum etc.

InstaLinks:

Prelims Link:

  1. Various cryptocurrencies.
  2. Cryptocurrencies launched by various countries.
  3. What is Blockchain technology?

Mains Link:

What are Cryptocurrencies? Why there is a need for regulation? Discuss.

Sources: Indian Express.