Issue: № 3, 2025
Doi: https://doi.org/10.37634/efp.2025.3.6
The paper explores the complex issue of accounting and taxation related to digital means of payment, with a particular focus on cryptocurrency. The growing importance of the topic is evident from two main factors: firstly, the rapid increase in cryptocurrency trading volumes worldwide, and secondly, the insufficient technical capabilities of tax authorities to effectively monitor and regulate such transactions. Despite the growing global interest in cryptocurrencies, the taxation and accounting of these digital assets remain a significant challenge, primarily due to the absence of universally recognized and established approaches to their regulation. The study highlights a critical gap in understanding the nature of cryptocurrency. It is unclear whether cryptocurrency should be considered a currency, a commodity, or a form of payment or exchange. This ambiguity contributes to the challenges faced in both legal enforcement and taxation. Without a clear legal definition or status for cryptocurrencies, it becomes extremely difficult to implement consistent taxation policies that can be applied universally. The paper emphasizes that the current regulatory framework for cryptocurrency transactions is fragmented. While a range of legal and regulatory acts exists, they fail to provide a cohesive, standardized approach to governing these digital currencies. In addition to addressing these theoretical issues, the paper systematically analyzes the experiences of various countries in the field of cryptocurrency tax regulation. This comparison reveals certain global trends in the taxation of digital currencies, showcasing both successful models and ongoing challenges. The study also delves into the specific characteristics of cryptocurrency taxation in Ukraine, drawing attention to the unique challenges faced by the country in aligning its tax policies with global standards. The paper identifies several key problems in the taxation of cryptocurrency transactions, such as the lack of comprehensive tax guidelines, the difficulty of tracking transactions, and the challenges in categorizing cryptocurrency for tax purposes. It also discusses the potential future developments in cryptocurrency taxation, both in Ukraine and internationally. The study assesses the prospects of creating a more effective and unified tax system for digital currencies, emphasizing the importance of international collaboration and the need for updated legal frameworks to address the growing role of cryptocurrencies in the global economy.
Keywords : accounting, cryptocurrency, taxation, digital currency, electronic money, bitcoin
References:
1. Brukhanskyi R.F., Spilnyk I.V. Crypto assets in the accounting and reporting system. Problems of the Economy. 2019. №2, 145–156. URL: https://doi.org/10.32983/2222-0712-2019-2-145-156 (in Ukrainian).
2. International Accounting Standard 38 (IAS 38). Intangible assets: IASB; International document from 01.01.2012. URL: https://zakon.rada.gov.ua/laws/show/929_050#Text (in Ukrainian).
3. On Virtual Assets: Law of Ukraine from 17.02.2022 No. 2074-IX. Holos Ukrainy from 16.03.2022 No. 57. (in Ukrainian).
4. On Amendments to the Tax Code of Ukraine and Some Other Laws of Ukraine on Taxation of Crypto Asset Transactions: Draft Law from 15.11.2019 No. 2461. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=67423 (in Ukrainian).
5. On Amendments to the Tax Code of Ukraine on Taxation of Virtual Assets Transactions: Draft Law from 13.03.2022 No. 7150. URL: https://itd.rada.gov.ua/billInfo/Bills/pubFile/1245229 (in Ukrainian).
6. IFRS Interpretations Committee decision "Holdings of Cryptocurrencies – June 2019". URL: https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/ifrs/ey-devel150-cryptocurrency-holdings-august-2019.pdf
7. Turchyn A.V., Turchyn N.V. Legal regulation of cryptocurrency in Ukraine. Economy. Finance. Law. 2021. №5/1, 26–29. URL: https://doi.org/10.37634/efp.2021.5(1).6 (in Ukrainian).
8. Shynkarenko O.M., Rohova N.V., Panivnyk I.A. Features of regulatory regulation of cryptocurrencies: Global experience. Financial Space. 2018. №3. pp. 139–146. (in Ukrainian).
9. Pascual Pedreno E., Gelashvili V., Pascual Nebreda L. Blockchain and its application to accounting. Intangible Capital. 2021. Vol. 17, № 1. URL: https://doi.org/10.3926/ic.1522
10. Prochazka D. Accounting for Bitcoin and Other Cryptocurrencies under IFRS: A Comparison and Assessment of Competing Models. The International Journal of Digital Accounting Research. 2018. № 18. pp. 161–188. URL: https://doi.org/10.4192/1577-8517-v18_7
11. Zubir A.S.H., Awi N.A., Ali A., Mokhlis S., Sulong F. Cryptocurrency Technology and Financial Reporting. International Journal of Management and Humanities. 2020. Vol. 4, № 9. pp. 103–108. URL: https://doi.org/10.35940/ijmh.I0898.054920