ACCOUNTING FOR CRYPTOCURRENCIES: CURRENT CHALLENGES AND FUTURE PROSPECTS

Abstract

The article analyzes the current state, trends and dynamics of the cryptocurrency market, focuses on the growing impact of digital assets on the global economy and substantiates the need for legal regulation of crypto assets circulation. The authors examine the essence of digital assets, identify and describe the main properties of cryptocurrency that distinguish it from other traditional assets (decentralization, security, volatility, etc.). The regulatory framework for determining the legal status of cryptocurrencies and the legal regulation of transactions involving them has been examined. Modern approaches to accounting and the procedure for reflecting information on cryptocurrencies in financial statements following the provisions of current accounting standards have been studied. The authors research current international accounting standards, particularly IAS 2 “Inventories”, IAS 38 “Intangible assets” and IAS 32 “Financial Instruments: Presentation”, which are used in accounting practice to reflect information about cryptocurrencies in the financial statements of companies. It has been found that individual national regulators are developing their own approaches to accounting for crypto-assets, but the absence of a single accounting standard at the international level creates unequal conditions for companies operating in different jurisdictions. The feasibility of developing a separate accounting standard to define the methodological principles for recording information on crypto assets has been substantiated, as it is a necessary condition for enhancing financial reporting transparency and reducing regulatory risks. The directions for improving approaches to accounting for cryptocurrencies are proposed, which include the isolation of a separate group of assets in the balance sheet, the development of a methodology for valuing crypto assets and their reflection in financial reporting. The prospects for the implementation of unified regulatory requirements for cryptocurrency at the level of international financial institutions have been identified, which will contribute to the development of the crypto market and its integration into the traditional financial system.