Cryptocurrencies require more robust accounting


Further to “Best leave Argo Blockchain to the crypto ideologues” (Small Talk, May 20): it is that clear cryptocurrencies have made great strides in a relatively short space of time — exemplified by Argo Blockchain’s standard London listing last summer.

Parallels could indeed be drawn between crypto-mining and the gold rush of the 19th century. We need more robust and consistent accounting for the different types of cryptocurrencies in order to introduce more effective stewardship and scrutiny, and progress the market beyond its current associations with the Wild West. The International Accounting Standards Board has started tackling the accounting issues concerning cryptocurrencies, specifically on how its standards apply to holdings of cryptocurrencies. We welcome this, but would encourage the IASB to do more: expanding the scope of its conclusions not just to holdings of cryptocurrencies, but also to crypto-mining activities and the use of cryptocurrencies as payment for products and services. The IASB should consider whether the accounting treatments that are implied make sense to investors.

Author: Richard Martin

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