This report, the Regulation of Cryptocurrency Around the World, surveys the legal and policy landscape surrounding cryptocurrencies around the world. The report covers 130 countries as well as some regional organizations that have issued laws or policies on the subject. Over the past four years, cryptocurrencies have become ubiquitous, prompting more national and regional authorities to grapple with their regulation. The resulting availability of a broader set of information regarding how various jurisdictions are handling the fast-growing cryptocurrency market makes it possible to identify emerging patterns, some of which are discussed in the report. The country surveys are also organized regionally to allow for region-specific comparisons.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. There are a number of publications dealing with the accounting and financial reporting issues that arise with respect to cryptocurrencies.
Some of the publications that may be of assistance, in no particular order, are:
- Introduction to accounting for cryptocurrencies under IFRS – CPA Canada
- Accounting for Crypto-assets – E & Y
- Cryptographic assets and related transactions: accounting considerations under IFRS – PwC
- Thinking Allowed Cryptocurrency: Financial reporting implications – Deloitte
- Holdings of cryptocurrencies – E & Y
This paper was prepared by the Chartered Professional Accountants of Canada (CPA Canada) and the American Institute of CPAs (AICPA). It provides some additional insight into blockchain technology and its impact on the audit and assurance profession. Although the paper was prepared in 2017, it still provides valuable foundational information.
CPA Canada has prepared a publication that looks at blockchain technology and allows you to familiarize yourself with the potential implications, opportunities and risks for capital markets and reporting.
“Awareness and understanding of the potential impact of emerging technologies are critical to the success of Chartered Professional Accountants (CPAs) as business leaders and trusted advisors in today’s rapidly changing business environment.
Technological Disruption of Capital Markets and Reporting?: An Introduction to Blockchain is intended to familiarize CPAs with blockchain technology and its potential because evidence suggests that investment and innovation in this area may accelerate.
Blockchain originated as the technology underlying the digital currency Bitcoin, but is currently receiving attention for its expanding applicability, particularly within capital markets and reporting. Blockchain-enabled automated processes could significantly affect the way business is conducted and the way information is exchanged and reported in the future if it is widely adopted.
This paper is intended to raise awareness of blockchain technology, provide examples of current blockchain initiatives and consider how capital markets and reporting might evolve as blockchain technology is further developed and implemented.”
If anything is going to change the face of accounting in the future, it will be blockchain technology. It’s important that accountants become familiar with the concepts and implementation to ensure that they don’t become redundant as the technology develops. Here’s a paper from the ICAEW which is a world-leading professional membership organization that promotes, develops and supports over 153,000 chartered accountants worldwide: Blockchain and the future of accountancy.