Accounting for digital currencies

Exploring the uncharted territories: a structured literature review on cryptocurrency accounting and auditing

“…Thus, in order to emphasize the use of consistent practices, the development of such accounting guidance is necessary (Jim enez-Serran ıa et al, 2022; P aunescu, 2018), although the continuous growth and fluidity of these digital currencies put a strain on the development of standards customized to crypto-assets, especially cryptocurrencies (Chou et al, 2022;Martin cevic et al, 2022). The process of developing and issuing a new standard involves various problems and impediments, among which are the rapid transformation of cryptocurrencies, the diverse characteristics of all types of crypto-assets, the rigor needed by such regulations, as well as the cost, time and knowledge required for such an action (Alsalmi et al, 2023;Blahu siakov a, 2022;Chou et al, 2022;Ramassa and Leoni, 2022).…”

“…In the absence of regulations, practitioners must rely on their own professional judgment in accounting for cryptocurrency transactions (Angeline et al, 2021;Morozova et al, 2020;Tan and Low, 2017), although this can lead to diverse practices worldwide (Alsalmi et al, 2023;Brukhanskyi and Spilnyk, 2019).…”

“…The integration of cryptocurrencies in business presents compelling incentives, unknown challenges and risks (Angeline et al, 2021), offering opportunities and posing dilemmas for the accounting and auditing profession (P aunescu, 2018). As their adoption continues to expand (Alsalmi et al, 2023;, it is important to ensure the integration of cryptocurrencies into the global financial landscape (S ¸cheau et al, 2020) and to promote regulatory frameworks that address the environmental and sustainability concerns (Arfaoui et al, 2023;Yan et al, 2022b;Umar et al, 2022).…”

“…Transactions are assembled into blocks, and miners engage in a competition to validate these blocks by solving intricate mathematical problems. Upon successfully validating a block, the miner adds it to the blockchain and receives a specified amount of cryptocurrency as a reward (Alsalmi et al, 2023). The mining process can be considered a revenue-generating activity, where the reward received for successfully validating a block is treated as income .…”

“…, 2021), offering opportunities and posing dilemmas for the accounting and auditing profession (Păunescu, 2018). As their adoption continues to expand (Alsalmi et al. , 2023; Procházka, 2018), it is important to ensure the integration of cryptocurrencies into the global financial landscape (Şcheau et al.…”