Central Bank Of Brazil Adopts IMF Crypto Classification Guidelines; Labeled ‘Non-Financial Product’
The Central Bank of Brazil (BCB) is planning to classify the buying and selling of crypto-assets according to the guidelines issued by the International Monetary Fund (IMF). The BCB even noted that through this move the traded guidelines will now be classified as non-financial products and therefore, will be accounted as goods on its balance sheet.
An advisory body on external sector statistics methodology to the International Monetary Fund (IMF) Statistics Department named the Balance of Payments Statistics Committee recommended classifying the buying and selling of crypto-assets as assets. produced, which means that it is compiled into the balance of payments asset account.
Cointelegraph Brazil says that this move is certainly significant that recognizing cryptos as property would force the legal system to recognize cryptos as a mode of payment.
The official document that announced this news reads:
“These assets come into existence as outputs of a production process (i.e., through mining and/or project development) under the control, responsibility, and management of a specific institutional unit using inputs of labor, capital, goods, and services. The resulting output is owned by an institutional unit and can be transferred from one institutional unit to another by engaging in transactions on markets. Further, asset holders do not have claims on other institutional units. These characteristics support the recommended classification of BLCAs as produced non financial assets.”
The cryptocurrency mining activity is therefore treated as a productive process. The recommendation was formalized in the text “Treatment of Crypto Assets in Macroeconomic Statistics” for a couple of reasons. Firstly because they are digital, the crypto assets have no customs record, but the purchases and sales by residents in Brazil imply the conclusion of contracts of Câmbio. Additionally, the export and import statistics of goods are therefore to include the purchases and sales of crypto-assets.