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Belarus Adopts Crypto Accounting Standard

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After legalizing cryptocurrency activities, Belarus has now adopted new accounting standards that deal with cryptos. The new measures classify tokens according to how they are acquired and their intended use. The document also outlines the information that companies will be required to submit to authorities. The regulations are expected to take effect on March 28.
Investments, Goods, Settlements

The new standard, developed by the Ministry of Finance, doesn’t explicitly mention digital currencies, which, in fact, are not considered legal tender in Belarus. However, it effectively regulates reporting of crypto flows.

The presidential decree also defines the obligations of the organizations that conduct token sales and also their specific approaches as regards assessment of the costs of “digital tokens.” In an announcement released to the media, the Ministry of Finance clarified that the crypto regulations apply only to private entities, not government institutions or state-owned banks.

Cryptocurrencies will now be classified according to how they are acquired and also their intended use. Tokens that are obtained through ICOs (Initial Coin Offerings) will be considered investments. Investors should debit them as either “Short-term financial investments” or “Long-term financial investments,” in case their circulation time is more than 12 months. Their amounts have to be credited in accounting balances under “Settlements with multiple creditors and debtors” and “Other expenses and incomes.”

If tokens are bought for subsequent sales by an exchange or a trader, they should be reported in “Good” debit accounts under “Expenses and Incomes for current activities” and “Settlements with contractors and suppliers” credit accounts. Tokens that are acquired through remunerations for verification of cryptocurrency transactions or via mining operations should be recorded under a debit account called “Finished goods” or under a credit section as “Main activities.”

Other regulations changed

Amendments have also been made to various National Chart of Accounts standards, which concern consolidated financial statements and individual accounting statements. The Ministry of Finance determined the information that firms involved in token activities must disclose through their accounting records. This data must include the type and amount of digital tokens in possession plus their initial values as calculated every year.

The decree concerning “development of the country’s digital economy” was signed in December by President Alexander Lukashenko. It legalizes cryptocurrency activities and creates conditions for crypto exchange services, ICOs, and also crypto mining operations. The new standard also introduces tax breaks among other incentives for digital currency businesses until 2023.

With the implementation of these regulations, Belarus is expected to become the first country with a clear and comprehensive legal framework that regulates the blockchain industry. The presidential decree doesn’t impose restrictions or any other special requirement for storage, placement, issuing and the exchange of tokens.

Corporate entities and individual crypto entrepreneurs will now be free to conduct digital currency businesses in the country as long as they have registered as residents of Belarus HTP (the Belarus High Technology Park). Again, the use of cryptos is anticipated to remain quite limited as they won’t be accepted as a legal means of making payments.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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