Accounting in the virtual world

by Aécio Prado Dantas Júnior

President of the Federal Accounting Council (CFC)

A postmodern world, in which reality configurations were changed and have allowed people to move between parallel, the real and the virtual universes, is a science fiction book script for a long time. In addition, interaction between people in the virtual environment through avatars is already widely used by online games. However, in the real world, what catches the eye today are the growing volumes of investments that the metaverse has been receiving and the increase in financial and business projections in this universe under construction.

In fact, today the metaverse is not yet materialized, that is, the 100% immersive experiences in this virtual reality do not yet exist. But while there are large corporations running to develop the technological infrastructure capable of enabling these interactions - in which physical and virtual means are confused - we are wondering how the regulation and accounting of business transactions that are already done in blockchain will be. /P>

It is certain that the essential role of accounting will be maintained from this imminent evolutionary leap of civilization towards the virtualization of reality, such as so many other evolutions already occurred in the world, for millennia, provided that accounting has emerged. P>

Today we are dealing with databases, systems and automation in the profession, but there is no doubt that we already have to think of taking a few steps beyond and preparing to assimilate the multiple aspects that involve the digital economy in blockchain and understand those Financial transactions projected for the metaverse, because the dividing line between physical and virtual reality is erasing. Some aspects necessary for this transformation are already consolidated, such as behavioral and culture changes in relation to virtual connections, especially driven by the pandemic.

Many questions still need to be answered, in the face of the multiplicity of things - and fraud - that are happening in digital economy: who is managing the negotiations made with cryptors? How to count the purchase of land or an investment in NFT? How will the accounting services be inserted in the metaveverse? Who will take care of governance? How will taxation be? Etc.

In the CFC/CRCS system, we are discussing migration between tangible and intangible assets in the balance sheet, due to businesses made with crypto wallets, considering, for example, that today we can get a patent, record a NFT, put in a blockchain and market it as a tangible asset.

Currently, there are initiatives aimed at regulating negotiations with cryptors, without entering the scope of accounting services. The rules on income tax return for those who buy and sell cryptors are in a Normative IRS. Meanwhile, in the House of Representatives, a Crypto Bill (No. 4,401/2021) is processed to try to discipline the tax issue. In addition, the Securities Commission (CVM) released, in October, a crypto guidance opinion and the securities market, with a recommendation to the market.

These are some examples of how regulatory government entities and agencies are acting on the standardization of negotiations that use blockchain technology. On the other side, rapidly, large corporations are advancing in the metaveverse configuration as an available reality.

And you, an accountant or accountant, how many is your knowledge and your preparation to act in this extraordinary new world?

Source: https://cfc.org.br/noticias/artigo-a-cantability-no-mundo-virtual/