The Belarus government has passed a new accounting standard with regards to virtual currency, during the days before legitimizing virtual currency operations. According to their acquisition and intended use, it’s categorised as digital tokens. The legal paper provides the set of company information needed to file with the state agency. On March 28, the presidential decree regarding the regulation of the virtual currency industry will come into effect.
Settlements, Investments, Commodities
A new standard that details the process of holding accounting information in relation to virtual currency trading has been developed by the Ministry of Finance in Minsk. The paper does not quite comment on virtual currencies directly, which are not seen as a legal instrument in Belarus. Nonetheless, it controls the reporting of the virtual currency flows effectively.
Also established in the Ministry’s decree is the obligations of the firms participating in the sale of tokens and the precise method to examine the cost of “digital tokens”. The regulation also takes into account private organizations and not government offices or the central bank, the department made clear in an official statement as reported by Belta news agency.
The new policy categorizes virtual currencies in relation to their acquisition and their desired usage.Tokens purchase through initial coin offerings is called investments. If their circulation period is over 12 months then they should be debited as a long-term financial investment, or referred to as a temporary financial investment. Under the accounting balance headings namely, “Settlements with different debtors and creditors” and “Other income and expenses”, their amounts must be credited respectively.
If the tokens are bought by a subsequent sale by an exchange or a trader, they have to be indicated under the “Good” debit account, and under the credit accounts: “Settlements with suppliers and contractors” and “Income and expenses for current activities” namely. As a result of the mining activities or as remuneration for the validation of virtual currency transaction, Digital tokes are to be posted under the headings “Finished goods” debit account as well as credit account “Main activities” found in the financial statements.
Other Laws Alter
Several other standards of the National Chart of Accounts have been amended respectively. This is in connection with the individual accounting statements and the consolidated financial statements. The ministry of finance stress that the data token companies need to present in their accounting records. Included in the information provided should be the amount and type of tokens owned, and also as their initial values as of the end of last year.