CHALLENGES AND PROSPECTS OF CRYPTOCURRENCY ACCOUNTING IN FOREIGN COUNTRIES AND UKRAINE

Abstract

The research paper provides a comprehensive analysis of the regulatory and legal framework governing the accounting and taxation of cryptocurrencies in foreign countries and Ukraine. The study explores the classification of cryptocurrencies as intangible assets under International Accounting Standards (IAS) and various national regulatory approaches. It examines the implications of different valuation methods, particularly the cost and revaluation models permitted by FRS 102, and their impact on financial reporting and corporate financial stability. A significant focus is placed on the legal nature of cryptocurrencies across different jurisdictions, including the EU, USA, Germany, and other countries. The research highlights key challenges related to the harmonization of regulatory frameworks and discrepancies in taxation policies for cryptocurrency transactions. Various international taxation models are assessed, with particular attention given to the classification of cryptocurrencies as assets, investment instruments, or means of exchange, depending on the regulatory stance adopted by different countries. The article further explores global challenges associated with cryptocurrency regulation, including the absence of unified accounting standards, risks stemming from price volatility, and the complexities of integrating cryptocurrency transactions into corporate financial statements. Additionally, the study evaluates the impact of evolving regulations, such as the MiCA framework introduced by the EU and the OECD guidelines on cryptocurrency taxation. To enhance the accounting and taxation of cryptocurrencies, the article proposes directions for regulatory improvement, emphasizing the need for standardized approaches to classification, valuation, and reporting. The article identifies key areas for further research, including developing advanced valuation models that account for the unique characteristics and volatility of cryptocurrencies, assessing their influence on corporate financial performance, and exploring their integration into global financial markets.