New Delhi, May 6 (PTI): The authorities should regulate and management cryptocurrencies as a substitute of prohibiting them, former finance secretary S C Garg mentioned on Thursday. Addressing a digital occasion organised by business physique Assocham, Garg additionally mentioned there may be undue emphasis on cryptocurrencies and these digital belongings would require commonplace frameworks.
“I don’t think we still have full clarity and understanding about how to regulate cryptocurrencies…Regulate, control cryptocurrencies but allow the crypto assets, encourage the crypto services,” he mentioned.
Cryptocurrencies are digital or digital currencies by which encryption strategies are used to control the technology of their models and confirm the switch of funds, working independently of a central financial institution.
The RBI had just about banned cryptocurrency buying and selling in 2018 and had directed all entities regulated by the central financial institution to stop dealing in digital currencies. The Supreme Court had requested the Centre in 2019 to border insurance policies for crypto, and in 2020, struck down the curbs imposed by the RBI.
All Indian firms should solely be maintaining digital accounts within the subsequent three to 5 years, Garg mentioned, including “it is possible to integrate national accounts with company accounts.”
In the instances to return, all the system of accounting, auditing and reporting could be automated, he added.
“At current, we’ve got this quarterly accounting system whereby firms have to point out their books of accounts after each three months.
“We need to set higher accounting standards and move out to automatic accounting system which would be relevant to present needs of the business,” he famous.
According to Garg, the present monetary reporting requirements are for the bygone industrial period and there may be an pressing want for an entire digitalisation of accounting, monetary reporting and auditing for firms.Â
