Bitcoin: The World Sets Its Eyes On El Salvador

• Published date: 13 December 2021
• Law Firm: TMF Group BV
• Author: TMF Group

As cryptocurrencies and other digital assets gain more prominence in the financial landscape, El Salvador is making headlines around the world for its adoption of bitcoin (BTC) as legal currency in the country.

As of 7 September 2021, El Salvador became the first country in the world to recognise bitcoin as legal currency, through the entry into force of the Bitcoin Law and Decree No. 27 containing the Regulation of the Bitcoin Law, making it mandatory for all Salvadorans and companies established in the jurisdiction. The Oversight Board of the Public Accounting and Auditing Profession, the entity that regulates accounting in the jurisdiction, issued an accounting application guide for bitcoin that considers how to account for transactions. It has taken into consideration compliance with the asset elements established within the conceptual framework of the IFRS standards and depending on the use for which the company will hold the cryptoassets: either as a means of...