min to read

2019-09-24 10:43:07




News

IFRIC: DID NOT RECOGNIZE BITCOIN AS A LEGAL MEANS OF PAYMENT

Bitcoin and other cryptocurrencies are neither

min to read

2019-09-24 10:43:07

Bitcoin and other cryptocurrencies are neither a financial asset nor a legal means of payment, according to the decision of the Committee for the Interpretation of International Financial Reporting (IFRIC). It is reported by The Korea Times.

Bitcoin and other cryptocurrencies are neither a financial asset nor a legal means of payment, according to the decision of the Committee for the Interpretation of International Financial Reporting (IFRIC). It is reported by The Korea Times.

 

During this summer's meeting, the IFRIC classified cryptocurrencies as intangible assets, identifiable non-monetary assets that have no physical form. The reason was that the cryptocurrency "can be separated from the owner and sold or transferred separately and it does not give the right to receive a fixed or defined number of monetary units".

 

According to the newspaper, this decision of the organization will pose new challenges for the cryptocurrency market players, who are seeking recognition of digital assets as legal currencies. In particular, the IFRIC interpretation will allow governments to create a legal basis for taxation, and companies to define corporate accounting rules for digital currencies.

 

The IFRIC works for the International Financial Reporting Standards Foundation (The IFRS Foundation), a not-for-profit international organization responsible for developing a single set of global accounting standards. For more than 140 jurisdictions, they are mandatory, and a number of other countries allow their application.

 

It should be reminded that earlier in September, the international rating agency Moody's said that blockchain technology was more likely to be brought under common standards by 2021.

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