Applying Global Accounting and Tax Standards to Cryptocurrencies

Crypto assets are a relatively new and emerging asset class which, by virtue of their intangible nature, have proven challenging to codify against existing accounting standards. This, coupled with their rapid, widespread adoption, volatile value, and decentralized nature has meant that accounting for digital (or crypto) assets has become a critical issue for businesses, investors, and external auditors alike. As with many innovative financial products, accounting and tax regulators are in catch-up mode as each global jurisdiction develops its accounting treatment of crypto assets.

Following a proposed accounting standards update in the US, this article will explore the similarities and ...