New Crypto Accounting Standard Come in Force in Belarus Soon

New Crypto Accounting Standard Come in Force in Belarus Soon

in News

Belarus has adopted a new accounting standard that deals with cryptocurrencies. According to it, digital tokens are classified in accordance with its 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.

The rules apply to private entities and not the state-owned banks or government institutions.

The rules state that

- ICOs are referred to as “Long-term financial investments” (if their circulation period exceeds 12 months), or as “Short-term financial investments”. They will be credited in the accounted balance under “Settlements with different debtors and creditors” and “Other income and expenses”.

- If crypto coins are purchased by a trader or an exchange, they have to be reported in the “Goods” debit account, and under “Settlements with suppliers and contractors” and “Income and expenses for current activities” credit accounts.

- Mined coins or as remunerated 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.

Changes also have been made in the individual accounting statements and the consolidated financial statements. According to the Belarussian Finance Ministry, the data companies working with tokens are required to disclose in their accounting records. The information should include the amount and type of tokens in possession, as well as their initial value as calculated at the end of the previous year.

Decree №8 will come into force on March 28, 2018. The presidential decree entitles companies and individual entrepreneurs to perform operations with tokens and cryptos. To do that, they have to register as residents of the Belarus High Technologies Park.

Private individuals will be allowed to convert cryptos to fiat, using services provided by “crypto-platforms” registered there. Besides, they

have the right to possess tokens and, taking into account the specifics established by the Decree, perform the following operations: mining, storage of tokens in virtual wallets, acquisition and exchange for other tokens, and sale of tokens for Belarusian rubles, foreign currency, electronic money. They can also donate and bequeath tokens.

“The issue of regulating cryptocurrency circulation is really relevant. Jurisdictions react differently – some allow it, others ban it, but very few ignore it,” financial analyst Vadim Yosub told Belapan news service, noting that the stance of Belarusian authorities in that respect is not very clear.

There are a lot of more unclear issues related to the new decree which should be also clarified in the nearing time. For instance, will Belarusians be able to receive their salaries in crypto and pay their bills in bitcoin? Will cryptos be accepted as legal tender in Belarus after the legalization?

 

Do you think that the legal status of cryptocurrencies in Belarus will change in the future? Share your opinion in the comments section below.  


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