Cryptocurrencies And IFRS: Current Developments, Accounting Principles, And The Role Of EU MiCA

• Published date: 22 December 2025
• Subject Matter: Accounting and Audit, Technology, Accounting Standards, Fin Tech
• Law Firm: Horizon Solutions Kft.
• Author: Mr Laszlo Soos

Cryptocurrencies have moved from niche digital experiments to mainstream financial instruments held by corporations, investment funds, and even governments. Their rapid rise challenges traditional accounting frameworks, particularly the International Financial Reporting Standards (IFRS), which were not designed with decentralized digital assets in mind. As cryptoassets become more integrated into business models, the need for clear, consistent accounting principles grows urgent. At the same time, regulatory initiatives such as the European Union's Markets in Crypto-Assets (MiCA) Regulation are reshaping the landscape, providing legal clarity that will inevitably influence accounting practice.

Current IFRS Treatment of Cryptocurrencies

At present, IFRS does not have a dedicated standard for cryptocurrencies. Instead, companies must apply existing standards by analogy:

• IAS 38 (Intangible Assets): Most cryptocurrencies are treated as intangible assets. They are initially recognized at cost, with subsequent measurement either at cost less impairment or at revalued fair value if an active market exists. The cost model is conservative, as it allows impairment losses but not upward revaluations unless the revaluation model is chosen.
• IAS 2 (Inventories): For broker-traders or exchanges cryptocurrencies may be classified as inventory. In this case, they are measured at fair value less costs to sell, with changes recognized in profit or loss. This approach better reflects the trading nature of cryptoassets.
• Not Cash or Financial Instruments: IFRIC clarified in 2019 that cryptocurrencies are not cash equivalents or financial instruments since they are not legal tender and do...