Council for standards of financial reporting (FASB), the body that sets generally accepted accounting principles of the United States, shocked many with his statement that the regulatory rules for cryptocurrency is not necessary because, in their opinion, the virtual currency will disappear in 5 years.
Whut?!? Accounting oversight board FASB says no crypto rules needed b/c “it expects cryptocurrency to be gone in 5 years” (h/t @josh_blockchain ) https://t.co/DoW3QTEi8I
— Jeff Roberts (@jeffjohnroberts) June 4, 2019
This position of the FASB in respect of cryptocurrency was announced after representatives from CalCPA California demanded to clarify the accounting principles and reporting currencies.
According to the statement CalCPA, which is composed of 54 members of the Committee, they are concerned about the divergence in the methods of reporting companies that use cryptocurrencies in their financial reports, but the FASB does not solve this problem.
The original position of the FASB
As reported by CoinDesk, Nancy RIX, Chairman of the Committee for the CalCPA accounting principles and services, sent a letter to FASB with statement:
“We believe that the use of the cryptocurrency will not diminish over time and will continue to expand both in volume and in new applications. We expect soon a major public company will begin to use cryptocurrencies, as evidenced by the decision of JP Morgan JPM Coin to release in February 2019”.
The Committee noted that the careless approach of the FASB to establish clear accounting standards cryptocurrencies harms both consumers and businesses. This is a serious problem that needs to be addressed. However, it does not matter for the FASB expects that after 5 years cryptocurrencies will disappear.
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