Cryptocurrency prices and market share continue to increase, but the accounting and reporting remain inconsistent and a headwind to wider adoption.
Even as the blockchain and cryptoasset sectors continue to increase, both in terms of retail awareness and institutional support, guidance related to reporting and valuation remains ambiguous. While conversations around the accounting and reporting for various cryptoassets might not make the headlines that price volatility does, it is critically important for the further maturation of crypto.
Accounting and valuation rules, for lack of a better phrase, set the ground rules for how individuals and institutions should value, handle, and report these different cryptoassets. Without consistent and market-oriented rules, continued development of this sector will face substantial headwinds.
Rules and reporting frameworks, again, might not drive headlines, but taking a bigger picture perspective illustrates just how important these concepts are. The substantial price increases that have occurred in 2020