European Financial Reporting Advisory Group seeks input from crypto experts’ on research project

European Financial Reporting Advisory Group, ERFAG, has sought input from various crypto-assets experts and practitioners on its research project. The main goal of the project is to identify and propose solutions for accounting challenges that are not addressed within existing IFRS Standards.

In a recently published note on the official website of ERFAG, the Brussels-based association sought to engage in matters relating to issuance via initial coin offerings and similar offerings, holding/investing activities and payment services; custodial and storage services; and mining services.

The post mentioned,

“The outreach will be conducted during the months of September – November 2019 through phone interviews that should take between 45 minutes to one hour. Related questions will be shared before the interview.”

The cryptocurrency industry was still in its nascent stage and the regulatory climate was still ambiguous in most parts of the world. To top that, there is limited information available on the underlying rights and obligations within the public domain.

ERFAG, in a bid to address all “potential gaps” in dealing with crypto-assets activities, has set out to define fact patterns within different jurisdictions within the EU and beyond.

According to the post, “this would help identify the associated rights and obligations from a customer/holder perspective as well as a seller/issuer/custodial service provider perspective”.

Cryptocurrency and blockchain startups have exploded in the EU’s financial technology scene over the last couple of years with London being at the heart of it.

Europeans curious about crypto 

According to the seventh ING International Survey on new tech, around  82% of European respondents knew at least a little about cryptocurrency and 41% had high expectations for it while 23% had low expectations. Around 32% are of the opinion that crypto is the future of online spending.