Belarusian Ministry Of Finance Releases Cryptocurrency Accounting Framework

Belarus has officially introduced cryptocurrency accounting standards, according to a March 6 document by the Ministry of Finance, local news outlet Jourtify reported yesterday, March 25.

The document lays out the information needed about tokens for accounting purposes, as well as how to categorize tokens received by organizations (excluding the National Bank, Development Bank, non-financial bank institutions, and various banking institutions) depending on their further use.

Last December, Belarusian President Alexander Lukashenko signed the “Digital Economy Growth” bill, which supports Blockchain and cryptocurrency development. The bill aims to streamline and remove bureaucracy that could prevent Blockchain innovation, a goal the cryptocurrency accounting standards fall in line with due to their clearer accounting instructions for crypto users.

Tokens, or “digital signs” as they are referred to in the document, purchased for the “realization of token-certified rights” will be classified under the credit categories “Settlements with various creditors and debtors” and “Other expenses and revenues.”

Tokens that are to be sold again must be classified under the “Goods” debit section and the “Settlements with contractors and suppliers” and “Current expenses and incomes” credit sections, and those obtained by crypto mining go under the “Finished Products” debit account and the “Primary Production” credit account.

An update to existing accounting standards adds that the content and type of tokens, as well as their initial value at the start of the year and the end of the reporting period, should be included.

In November of last year, Lukashenko also signed a crypto-related bill for the Belarusian High-Tech Park (HTP) that will create an economic zone modeled after Silicon Valley, allowing new technologies to develop specifically including cryptocurrencies and Initial Coin Offerings (ICO).