FASB Sets New Laws on Crypto Accounting and Disclosure
- The FASB sets new laws on crypto accounting and disclosure.
- The new law intends to provide more information to investors, especially about gains and losses.
- It also focuses on differentiating digital assets from intangible assets.
The Financial Accounting Standards Board (FASB) put forward a proposal to introduce new rules on cryptocurrency, especially on accounting and disclosure. According to the new rule, crypto exchanges and crypto-related firms are required to undergo specific accounting standards and other guiding principles.
Previously, in May 2022, the FASB voted to set specific rules on crypto accounting and disclosure, specifically on the cryptocurrencies such as and , with the intention to provide more information to investors.
Christine Botosan, the FASB board member, commented:
This is pretty quick for us and this is a pretty big change. I’m really pleased with the transparency that this proposal will provide to investors.
Notably, crypto companies and investors were highly demanding such a regulation in the crypto industry, mainly because of the fact that the law would help understand the losses and gains clearly and immediately. It is notewo …
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