Topic: [2018-03-26] Belarus Adopts Crypto Accounting Standard (Read 163 times)

In this article, I see an inconsistency. Accounting is conducted only by legal entities. The article refers to individuals. This means that the mechanism of taxation of operations with cryptocurrencies for ordinary people is not developed. We see a paradox. On the one hand, we see a positive attitude towards cryptocurrency on the part of the government of Belarus. On the other hand, we do not see the mass registration of cryptocurrency exchanges in the jurisdiction of Belarus. Is there a problem?

When the world is converging towards adoption IFRS, I wonder what is the point in the government of Belarus giving out accounting guidance. Governments should make their stance clear on matters like taxation. As far as accounting is concerned, they should give broad guidance on how to classify cryptocurrencies and let international experts set the standards.

Quite well classified for accounting, everything is laid out on the shelves as needed. Indeed, such a classification can serve as a model for similar actions in other countries. The Crypto currency is good for accounting here.

Other countries can use this standard too on how they treat cryptocurrencies because I believe some countries just choose to restrict crypto in their country because they don't know how to recognize it. Maybe it is time for International Accounting Standards (IAS) too to include cryptocurrencies so that companies will know and would have a consensus on how to recognize these assets or income. Some companies may have investments in cryptocurrencies so it would be good if the accountants and auditors know how they would treat it so that they would have a fair evaluation/audit of the financial statements.

Exactly that. It's basically the principle of those with the least economical power to lose, are the first to open up the door for crypto to bring them the economical growth they so badly need. As soon as other countries understand that crypto doesn't form a threat to their economy by default, and some countries already acknowledged that, they will slowly but surely hop on board as well. Funny thing is that the mainstream media just doesn't want to report about these positive developments, while each minor sign of governments forcing through regulations is something they highlight with great excitement, and that of course in a way they make it seem like crypto is facing difficult times, lol....

I noticed that countries with not so powerful economies are very interestd in crypto and do everything to meet its needs. For my piont of view they see a good opportunity to strengthen their positins in it... Belarus itself doesn't have mineral resources, that's why they are trying to catch the moment and cut a piece of pie for themselves

I am expecting that this can be the model which other countries can adopt and/or get inspired with as far as treating cryptocurrency in accounting. This is telling us that slowly more and more countries can be interested to change or modify the traditional systems to accommodate the cryptocurrency movement. We need more countries to also do the same thing.

Days before legalizing crypto activities, Belarus has adopted a new accounting standard that deals with cryptocurrencies. It classifies digital tokens according to their acquisition and intended use. The document defines the information companies will be required to share with authorities. The presidential decree regulating the crypto sector comes into force on March 28.

Goods, Investments, Settlements

The Ministry of Finance in Minsk has developed a new standard that specifies the procedures for keeping accounting records of crypto transactions. The document does not explicitly mention cryptocurrencies, which are not regarded as legal tender in Belarus. Nevertheless, it effectively regulates the reporting of cryptocurrency flows.

The obligations of organizations conducting token sales and the exact approaches to assessing the cost of “digital tokens” are also defined in the Ministry’s decree. The rules apply to private entities and not the state-owned banks or government institutions, the department clarified in an announcement quoted by Belta news agency.

The new standard classifies cryptos according to their acquisition and their intended use. Tokens acquired through initial coin offerings (ICOs) are referred to as investments. They should be debited as either “Long-term financial investments”, if their circulation period exceeds 12 months, or as “Short-term financial investments”. Their amounts must be credited in the accounting balance under “Settlements with different debtors and creditors” and “Other income and expenses”.

If the tokens are purchased for subsequent sale, by a trader or an exchange, they have to be reported in the “Goods” debit account and under the following credit accounts: “Settlements with suppliers and contractors” and “Income and expenses for current activities”. Digital tokens acquired as a result of mining operations or as remuneration for verification of crypto transactions are to be recorded under the “Finished goods” debit account and also as “Main activities” in the credit section of the balance.

Read more: https://news.bitcoin.com/belarus-adopts-crypto-accounting-standard/