The Brazilian Central Bank is currently focusing on updating and redefining accounting rules for digital assets held by companies. The new draft regulations outline the rules for assets issued, received or detained by the same company and are subject to public consultation.
Brazil’s Central Bank holds consultations on digital assets accounting practices
As more institutions begin to hold digital assets, governments around the world are redefineing the way these assets are considered. The Brazilian Central Bank is ready to issue public consultations on a draft regulations that will update the treatment of these assets from an accounting standpoint.
The proposed ruleset distinguishes accounting for these assets depending on several factors. If an asset is acquired or received, the asset must be recognized at the price paid, and there will be an update of these figures based on the fair value of the asset in the market.
Regarding these assets, the draft states:
After initial recognition, virtual assets acquired or received must be measured at fair value, at least monthly, as a result of periods, to calculate valuation or depreciation for the appropriate revenue or expense account.
These rules apply to assets received as a reward for providing verification services.
Digital assets issued by financial institutions are treated as dependent on the details of the asset itself. If assets are designed to provide any compensation, they are considered liabilities and are subject to rules regarding financial instruments.
Finally, if an institution provides custody services, the assets must be recorded at fair value in a revaluation of fair value.
The consultation is scheduled to begin on August 24th, with rules being changed before adaptation according to the feedback received. This year, the bank also conducted an open consultation process with virtual asset service providers (VASPs) on Stablecoins regulations.
Read more: Brazil’s Central Bank launches public consultation on creating rules for virtual asset service providers
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