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Indian Gov: Companies Must Disclose Crypto Holdings

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  • Companies incorporated in India are required by law to disclose crypto holdings, as of April 1.
  • Indian crypto industry representatives told Decrypt the news is positive but has no bearing on the tabled motion for an outright crypto ban.

While the Indian government mulls a ban on crypto, it’s tightening the screws on existing regulation. The Indian Ministry of Corporate Affairs said on Wednesday that all companies incorporated in India must disclose crypto holdings and dealings, effective April 1.

Executives in the Indian crypto industry representatives told Decrypt that the government’s recognition of crypto holdings is a welcome move, though the rule change shouldn’t be interpreted as hope that the government’s tabled motion for a crypto ban is set to fail.

Implications of the ban

In addition to crypto holdings, the new rules, which update the country’s Companies Act of 2013, require companies to disclose the total profit or loss on crypto transactions, as well as any deposits or advances received for crypto trading.

Nischal Shetty, CEO of WazirX, a crypto exchange that last month recorded trading volumes of $2.3bn, told Decrypt that the new rules indicate that the government is willing to understand the extent and size of the crypto sector. Zakhil Suresh, founder of crypto fantasy trading app SuperStox, explained that the extra scrutiny on crypto holdings is due to Bitcoin’s price, which is now too high to ignore.

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Sohail Merchant, CEO of the Indian crypto exchange PocketBits, thinks it shows that India’s government has come a long way. When he started his company in 2016, it took him several months to get approval for registration as the company documents mentioned Bitcoin—something the government didn’t officially acknowledge at the time. But things are different these days: “Regulators now understand the importance of embracing crypto,” he said.

All Quiet on the Ban Front

The issue that looms large remains the prospect of a potential ban on crypto. In late January, the Indian Parliament tabled the “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.”

The bill sought to ban all “private cryptocurrencies”, save for certain unnamed exceptions (“to promote the underlying technology of cryptocurrency and its uses”).

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That initially fuelled much anxiety across the Indian crypto industry. But the industry representatives told Decrypt earlier this month that they breathed heavy sighs of relief when the finance minister appeared to tone down the government’s previous position.

Minister Sitharaman said the government would allow “a window of experiment for crypto,” which they interpreted as a change in tone because he mentioned crypto, not just blockchain.

Since things are so tense, any ministerial statement or any new government directive, such as the new disclosure requirements, are examined for hints about how India’s parliament may vote on the crypto ban.

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This one is no different.

Sidharth Sogani, who heads the industry pressure group, the Association for Blockchain, Crypto, told Decrypt the new disclosure rules are nothing special. “It’s basic data collection by the government, and it can go either way,” he said.

But any recognition is better than being totally ignored, said Jagdish Pandya, chairman of Block On Capital, a blockchain advisory company. “While this does not suggest a full-fledged regulation through legislation yet,” he told Decrypt, “such small steps still matter.”

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Binance

Binance’s Trading Volume Hits $100 Billion in Just One Day

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Binance continues to see unprecedent trading activity while attempting to sail through regulatory hurdles

Binance’s daily volume hit an eye-popping $100 billion on Oct. 20, according to a tweet by CEO Changpeng Zhao.

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The leading crypto exchange recorded this crucial milestone on the day Bitcoin, the largest cryptocurrency, reached a new all-time high of $67,276.

Despite introducing stricter measures for users due to severe regulatory scrutiny, Binance enjoys a comfortable lead over other crypto exchanges in both spot and derivatives trading, according to data provided by CoinMarketCap.

Eerier this month, the trading platform also announced a $1 billion ecosystem fund.         

Meanwhile, the decentralized finance sector is catching up with centralized behemoths. The total value locked in DeFi protocols has hit $100 billion for the first time.

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Crypto Exchange

Binance Smart Chain DeFi protocol PancakeHunny suffers flash loan attack

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As the users argue “what’s better,” Ethereum or Binance Smart Chain, the latter saw another decentralized protocol being exploited. PancakeHunny on BSC was attacked by a flashloan and no, this wasn’t a first for the protocol.

Blockchain security and data analytics company Peckshield Inc. announced the attack on Twitter.

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The last time that this protocol was exploited, was in June, wherein the team had noted the creation of a smart contract to exploit the Hunny Minter Smart Contract. The contract was subsequently executed 91 times, as per the team.

The team took a long time to respond to the hack this time but assured the users that their funds were safe. The team added in a preliminary report,

“On 20 October 2021, at 0920 UTC. A smart contract was created to exploit the Hunny TUSD vault. The Contract was subsequently executed 26 times.”

PeckShield provided some details about the same noting,

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According to the agency, this hack was possible due to a profit inflation bug, which converts the relatively small amount of harvested ALPACA, to a large amount of TUSD for staking. PeckShield added,

“These converted TUSDs are then counted as profit, now inflated to mint large amount of $HUNNY!”

Source: Twitter

Actions taken by the team

The PancakeHunny team has stopped the minting process for the TUSD vault while assuring that funds in Hives were all SAFE. The exploit did not affect other Hives and Vaults but the price of HUNNY.

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They added that the issue has been identified and the team will change its rooting to higher liquidity pools to prevent the aftereffects of price manipulation of LP pools.

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Coinbase

NBA Makes Coinbase Its Exclusive Crypto Partner

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Coinbase has joined FTX in scoring major partnerships in the sports industry     

The National Basketball Association has announced a multi-year deal with Coinbase, America’s biggest crypto trading platform in an Oct. 19 press release.   

Coinbase will act as the exclusive partner of the NBA, NBA G League, Women’s National Basketball Association (WNBA), and other leagues. 

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As part of the deal, the exchange will have a brand presence during televised games as well as unique content and activations that are meant to boost crypto awareness.  

Kate Rouch, Coinbase’s chief marketing officer, says that the company is proud of joining forces with the NBA:

The freedom to participate and benefit from the things you believe in is at the heart of Coinbase’s mission.  Nobody believes this more than NBA and WNBA fans. We’re proud to become the Leagues’ official cryptocurrency partner.

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The shares of Coinbase are up roughly 3% at press time. 

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