According to a report by Jourtify, the Belarus government has already set out the cryptocurrency accounting framework which acts as a guide to all those involved in the cryptocurrency trading in Belarus - from crypto miners, buyers and sellers. This is significantly sooner than the July deadline set by by the G20 meeting in Argentina.
On 21st December last year, Belarusian president Alexander Lukashenko signed the “Digital Economy Growth” bill, which legalises cryptocurrencies, initial coin offerings (ICOs) and smart contracts in the country. The decree titled “On the development of the digital economy,” would go into effect on Mar. 28 and 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.
The Jourtify report containing the framework refers to the digital tokens as digital signs. The digital signs bought to satisfy token-certified rights falls under the ‘settlement with various creditors and debtors’ or the ‘other expenses and revenues’ category. The digital signs bought with the intention of selling are found under the debit section of goods. Tokens obtained from crypto mining, or those used as settlement with contractors/suppliers and those falling under the credit section fall under the ‘debit account’ under the ‘finished products’ category and on the credit account of the ‘primary production’ category.
According to the state-owned news agency, BelTA, the standards are specific on procedures for recording and reporting crypto transactions. Digital tokens acquired through ICOs (initial Coin Offerings) are reported as investments and recorded under “Settlements” between debtor and creditor and “Other income and expenses”. Tokens purchased to be resold for profit are reported as “goods” and recorded either as Settlements between suppliers and contractors and “Income and expenses for current activities”. Finally, Digital tokens obtained through data mining activities will be recorded as “Finished goods” in debit account and “Main activities” in the credit section.
As part of the new guidelines, data companies that handle digital tokens must also disclose the amount, type and initial value of tokens in their possession. The rules which don’t apply to state-owned institutions will determine the cost of digital tokens which will determine taxes.
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.