Ministry of Corporate Affairs asks ICAI to submit a report on Bitcoin auditing

Ministry of Corporate Affairs asks ICAI to submit a report on Bitcoin auditingThe Ministry of Corporate Affairs has asked The Institute of Chartered Accountants of India(ICAI) to submit a report on auditing of Bitcoins. ICAI will submit its report by 31st March 2018.

“The study will look into how Bitcoin disclosures can be made in the financial statement,” said Debashis Mitra, council member, ICAI, at a seminar on corporate governance, analysing Uday Kotak Committee recommendations and recent changes in Companies (Amendment) Bill, 2017, organised by the CII. This format will be set as a standard for all such future transactions. Also, one of the motives behind the study was to insulate auditors of any legal discrepancies arising out of such transactions. At present, there is no available data on the quantum of Bitcoin transactions by Indian companies, something which the ICAI study will delve into.

Recently, the Union finance minister Mr. Arun Jaitley said  Bitcoins or such cryptocurrencies are not legal tender and those indulging in such transactions are doing it at their own risk, as several members expressed concerns over trading on these platforms.

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During the question hour in Rajya Sabha, Dravida Munnetra Kazhagam (DMK) member Kanimozhi wanted to know whether the government was considering regulating crypto-currencies such as bitcoin and ethereum, as India “accounts for more than 11 per cent” of such trade globally.

Jaitley emphasised that the centre’s consistent position was that such currencies were not legal tender. “The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken,” he said.

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