Accounting Framework Adopted by Belarus Supports Cryptos

The recent announcement by Belarus states that the country will soon introduce new standards for crypto accounting. This decision might be what it takes for Belarus to become one of the most crypto-friendly countries in the world.

Belarus brings the new decree

A recent decree states that the Finance Ministry of Belarus has managed to create a new working standard for cryptocurrency transactions. This decree will now allow the account of these transactions to work in an entirely new fashion.

Additionally, the decree will also make alt-assets utilization and tax-filing much easier for all the businesses that work with cryptocurrencies.

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This move will allow the small nation to join the list of countries in Europe that are seen as crypto-friendly and who are helping to bring the new age of transparency and digital innovation. Other countries that have changed their economic structure to become crypto-friendly also include Estonia, Malta, and Switzerland. By doing this, all of them have increased the number of foreign investments, as well as employment rates.

Details of the decree

The decree brought in some specific measures to help the Finance Ministry when it comes to recording transactions, but there are some other interesting things regarding this document. One of them is that it never actually uses the term ‘cryptocurrencies.’ The term used instead is ‘digital signs,’ which is believed to be because Belarus still doesn’t recognize such virtual assets as legal tender.

There are a few more points which are noteworthy. For example, if any startup wishes to start a token sale or crowdfunding event, they have to state the price of the tokens to the national financial regulator in advance. Of course, this only goes for any private crypto-players. Official government institutions do not have to follow this rule.

Next, any tokens that are bought from ICOs will be seen as investments for tax purposes. The purchases can be seen explicitly as long-term investments, but that depends on the period of holding.

Another thing worth noting is that the purchase of any token needs to be mentioned in people’s tax files. This needs to be under one of the two categories – “Other income and expenses“, or “Settlements with different debtors and creditors“.

When it comes to currencies that were bought via online exchanges, their new owner needs to mention them in the credit section of the debt category, and they should be accounted for as ‘Goods’.

Finally, there is also the rule that cryptocurrencies that are obtained through mining have to be mentioned under the “Finished Products” category, as well as “Primary Production“.

Conclusion

This move seems to be pretty well-thought out, and it puts Belarus way ahead of many bigger countries, like the US, Russia, and India.

Alexander Lukashenko, the country’s President, upvoted a Bill regarding cryptocurrencies last year. Thanks to that Bill, Belarus will soon be able to benefit from a new economic zone, possibly similar to the one of the Silicon Valley.

Finally, this move seems to be indicative that cryptocurrencies continue to be accepted. With developments like these, it is only a matter of time before other countries in Europe start doing the same.

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