Accounting For Cryptoassets

Generally, cryptoassets, including cryptocurrencies such as Bitcoin, are transferrable digital assets which utilise Distributed Ledger Technologies (DLT) to verify and secure transactions without the intervention of any middleman, that is, a decentralised structure.

Cryptoassets grew into a global phenomenon in 2017, reaching a total market capitalisation of circa $823 billion on January 8, 2018 (www.coinmarketcap.com/charts/). The rapid increase in the value and volatility of cryptoassets has attracted a tremendous amount of interest from regulators and governmental bodies across multiple jurisdictions, particularly in Malta, the Blockchain Island.

Malta was the first country to issue a framework (in the form of three statutes), aimed at regulating companies operating in DLT's sector.