24 September, 2019
The International Financial Reporting Interpretations Committee (IFRIC) stated that Bitcoin and altcoins cannot be considered a financial asset or legal tender. A non-profit organization that develops a single set of global accounting standards has classified cryptocurrencies as intangible assets.
Experts explained that digital money can be separated from the holder and sold or transferred separately, and it does not give the right to receive a fixed or determinable number of monetary units. IFRIC interpretation will allow governments to create a legal basis for taxation, and companies to define corporate accounting rules for cryptocurrencies.
The IFRIC position is supported by authorities in several countries. In particular, the Singapore government announced that cryptocurrencies were not legal tender and warned business owners against accepting payments in cryptocurrencies.
IFRIC works with the IFRS Foundation, the nonprofit international organization responsible for developing a single set of global accounting standards.