back Back

Bitex, first exchange in India to provide cryptocurrency investment disclosure

By Leandra Monteiro

April 20, 2021

  • Bitex
  • India
Share

Bitex, India, cryptocurrency, cryptocurrency investment disclosure, Global Cryptocurrency Exchange Bitex announced that it has begun providing Investment Declaration Report for all its retail and institutional investors, becoming the first Exchange in India to comply with the recent amendments made to the Companies Act 2013 by Ministry of Corporate Affairs.

Earlier this month, the Ministry of Corporate Affairs had sought full disclosure of crypto transactions and holdings by companies making it mandatory for companies to declare cryptocurrency investments. The Government has earlier also indicated that the income from cryptocurrency gains will be taxable under the Income Tax Act, 1961.

The report can be submitted for tax purposes by individual investors as well as by companies and can be used to prepare financial statements as stipulated by the government. To enhance transparency into the cryptocurrency trading, the exchange will also support regulators as per disclosure rules under the Companies Act.

Bitex Founder and CEO Monark Modi said, “As cryptocurrency becomes a mainstream investment asset it is important that standard procedures that are applicable to any other investment grade asset be applicable to Digital Assets. The recent directions by the Government clearly pave the way for a transparent functioning of cryptocurrencies in India and also help retail and institutional investors to confidently go ahead to trade or hold cryptocurrencies. Similar practices are now commonplace in other major crypto markets in the world and Bitex is committed to supporting investors and regulators with the necessary framework that will boost the market in India.”

Bitex’s move will support the Government’s aim of verify business investments in cryptocurrency and transfer of funds. For businesses, it will improve the transparency in financial statements as the figures provided by the exchanges can be tallied by the auditors before their final document is submitted. The reports can be included in the profit and loss statements and balance sheets submitted by the companies at the end of the year.

In the United States, crypto assets are categorized as a property and are liable to be taxed as a short term or long term capital gains depending on the duration for which the asset is held. For any gains or losses made for a duration less than a year are taxed in the income tax bracket the investor lies in. Any gains or losses made from a crypto asset held any longer than a year incurs lower than 20 per cent tax depending on individual or combined marital income. In India, until now there has been no data available with the IT department, and the recent move will certainly help the department to assess tax liability of cryptocurrency investors.

Previous Article

April 20, 2021

Binance.US welcomes former acting Comptroller of the Currency Brian P. Brooks as CEO

Read More
Next Article

April 20, 2021

5 fastest growing FinTech companies in Atlanta

Read More








IBSi Daily News Analysis

cybersecurity

April 18, 2024

Bitex

GCC banks bolster Cybersecurity measures to combat email fraud

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 19, 2024

Wagestream raises $21.8m to expand financial well-being app

Read More

April 18, 2024

Alter Domus goes live on the Temenos Multifonds platform

Read More

April 16, 2024

Lloyds Bank makes first digital trade transaction on WaveBL platform

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023