On May 30, 2016, the first Ukrainian cryptocurrency, Karbowanec, appeared
(Ukrainian Karbowanec or KRB). As Ukrainian Internet sources point out:
«"Karbowanec” is a cryptographically protected (encrypted) information, and
karbovanets is the unit of exchange, that is, the unit of information» [12]. The cost of
1 KRB as of August 1, 2018 is 8.65 UAH.
Hence, the undisputed fact is that cryptocurrency conquers the world market.
However, there are many unresolved issues regarding the definition of the essence of
cryptocurrency, understanding of the consequences of its implementation, legal bases
of functioning in world markets, methods of accounting for operations with this type
of asset.
Accordingly, the purpose of the study is to analyze the legal regulation of
transactions with cryptocurrency in different countries with a developed and
transformational economy, including Ukraine, definition of economic substance and
accounting procedure, methods of cryptocurrency valuation, its place in the financial
statements.
To achieve this goal, the following methods were used: analysis, comparison,
deductive, hypotheses.
Cryptocurrency in world economy. In international practice, there is currently
no single approach to the recognition of cryptocurrencies. In some countries,
cryptocurrency is defined as product, in particular, the United States provided her with
the status of goods, and now companies that want to use this tool for trading must be
properly registered, get licenses and keep track of transactions. Also, in the United
States it was declared that cryptocurrency is not a legal means of payment, but is a
carrier for the exchange. In the UK cryptocurrency is referred to as “private money”,
which means that VAT is not charged from their value for conversion in any other
currency, but is paid when supplying goods or services in exchange for cryptocurrency.
At the same time, the Bank of England does not see a threat to the monetary or financial
stability of the United Kingdom in the virtual currency, however, the government
necessarily takes part in the control of the Bitcoin situation. Germany recognized
Bitcoin as a settlement currency and a form of private money [7].
On Bitcoin official site cryptocurrency is marked as an innovative payment
network and a new kind of money, which uses P2P technology and functions without
a central control body [8].
In Japan, digital currency has been recognized as an instrument with the same
payment functions as the national currency. At the same time, in Japan in March 2014
a decision was taken on the need to regulate the circulation of cryptocurrency and
taxation of such transactions [10]. Accordingly, on March 14, 2018, the Accounting
Standards Board of Japan (ASBJ) issued the Practical Solution on the Accounting for
Virtual Currencies under the Payment Services Act as a part of Japanese GAAP. The
Standard is effective from the beginning of the fiscal year that begins on or after April
1, 2018. Early application is permitted.
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