Crypto is an Intangible Asset, Global Accounting Standards Body Argues

Cryptocurrency holdings are neither cash nor financial assets, but meet the definition of an intangible asset, at least according to an influential global accounting standards body.

The Korea Times said in a report on Monday that according to the Korea Accounting Institute, the International Financial Reporting Interpretations Committee (IFRIC) made such decisions after a meeting in London in June.

Indeed, the London-based IFRIC, which sets the International Financial Reporting Standard (IFRS), concluded in a little-noticed document dated June 21 that holdings of cryptocurrency meet the definition of an intangible asset, on the grounds that “(a) it is capable of being separated from the holder and sold or transferred individually; and (b) it does not give the holder a right to receive a fixed or determinable number of units of currency.”

Intangible assets are defined by the committee as non-monetary assets without physical substance. It has also concluded that…