The field of virtual currencies is constantly evolving. The number of companies dealing with the transfer, storage, and intermediation of cryptocurrencies are constantly increasing. This is a relatively new and complex field, for which there are no clear and unambiguous accounting standards. There are also differing opinions among specialists on the question of how to reflect cryptocurrencies in accounting. For practitioners, a daily challenge is the reflection of blockchain transactions in accounting, if they do not have specific knowledge and skills in how to read, process, and interpret the raw data.
Accountants specializing in cryptocurrency accounting help understand the tax impact of virtual currency investments, provide guidance on how to reflect profits related to cryptocurrencies, manage cryptocurrencies, and tax the results.
At the same time, they help investors stand in good stead by following anti-money laundering regulations, accounting standards, business law, and tax law. Unlike classical accountants, cryptocurrency accountants have a wider understanding of blockchain technology. They are able to advise on how to keep cryptocurrencies in such a way that all laws are followed during the process.
In cryptocurrency accounting, we rely on internationally recognized financial reporting standards, as there is no direct cryptocurrency financial accounting standard yet. To provide the necessary service to the company, it is important to understand in detail the company’s cryptocurrency business area. Does the company use virtual currency as its own payment means, for trading, for investing, or does it engage in mining, issue cryptocurrencies, offer cryptocurrency exchange and wallet services to customers.
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