Redefining Financial Standards: Addressing the Accounting Challenges of Cryptocurrencies with a Blockchain Framework

Abstract

The swift adoption of cryptocurrencies presents significant challenges for traditional accounting frameworks. This study explores the limitations of existing standards, specifically IFRS and GAAP, in effectively accounting for cryptocurrencies and emphasizes the need for modified standards that accurately reflect the unique characteristics of these digital assets. Through a combination of quantitative and qualitative analyses, this paper highlights substantial deficiencies in current accounting practices and advocates for the development of tailored accounting standards. Additionally, it introduces a blockchain framework aimed at enhancing the transparency, accuracy, and compliance of cryptocurrency accounting. This innovative framework leverages blockchain technology to align with the decentralized nature of digital assets, proposing a transformative approach to meet the unique demands of cryptocurrency transactions.