Regulation: What's happening in September 2018?
The #1 thing preventing businesses from adopting cryptocurrency is the lack of clear government regulation.
The #1 responsibility of accounting professionals is compliance with government regulations.
It's an infinite loop of confusion for both businesses and accountants across the country.
Earlier this week, SEC Chief Accountant Wesley Bricker went into detail on digital assets at the AICPA National Conference on Banks & Savings Institutions.
There, he stressed the importance of bookkeeping responsibilities:
It follows that changes in technology need not work against investors and the public capital markets.
Moreover, companies must continue to maintain appropriate books and records — regardless of whether distributed ledger technology (such as blockchain) smart contracts, and other technology-driven applications are (or are not) used.
He stressed the importance of proper bookkeeping and the role of accounting professionals as advisors to their business clients. He spoke of innovations in technology being "the ally of businesses, not the opponent."
He touched on the typical pain points, including:
- Related party disclosures
- Loss contingencies
- Illegal activity
The most important takeaway for businesses and accountants is that accurate records must be kept. The absence of specific regulations does not change the fundamental responsibility of reporting.
In other words, maintaining complete and accurate books and records, along with maintaining related internal accounting controls, is not just a good practice, it is a regulatory requirement.
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