A global accounting standards body has concluded that crypto is neither cash nor a financial asset, but constitutes an intangible asset.
Crypto an Intangible Asset
According to a report by The Korea Times on Sept. 23, the International Financial Reporting Interpretations Committee (IFRIC) came to the conclusion after a meeting in London in June. The body determined that crypto met the criteria for an intangible asset.
The not-for-profit international organization is responsible for establishing global accounting standards and is required in more than 140 jurisdictions.
The IFRIC said that bitcoin and altcoins are neither legal tender nor a financial product, as they are “not cash nor an equity instrument of another entity.” Cryptoassets also do not “give rise to a contractual right for the holder and it is not a contract that will or may be settled in the holder’s own equity instruments.”
The decision is expected to become the standard for international book-keeping and could have potential ramifications for the taxation of cryptoassets.
In addition, the report claims that crypto-exchanges, many of whom hold to the stance of crypto as digital currencies, could be negatively impacted by the new classification.
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