The New Era of Online Trading Companies for Digital Coins (Cryptocurrency) Between Integrity and Abuse: Accounting and Finance Perspective

Abstract

ainly, this type of cryptocurrency is still under study and still faces deliberations in regard to the method to account for in the investors accounting system.According to Generally Accepted Accounting Principles (GAAP), cryptocurrencies are recorded as an intangible asset at cost, and the diminution in value must be recorded.This implies that the value of a company's balance sheet may erode over time.And, according to the International Financial Reporting Standards (IFRS), the cryptocurrencies are considered to be inventory and should be accounted for in terms of IAS 2 Inventories.Inventories are typically measured at the lower of cost or net realizable value.Moreover, this type of cryptocurrency has never been presented by investors in the financial statement of balance sheet as capital to help maintain a source of finance similar to capital stocks, and accordingly has never shown any gains or loss whether realized or unrealized in the comprehensive income statement.As a consequence, investing in such cryptocurrency nowadays is considered an experiment with unpredictable promising financial growth, rather it can be a cause for investors losing cash very rapidly without any previous warning or alarm.As its created market is highly volatizing and sometimes technical analysis indicates erroneous indications, All of this is based on assuming that investors trade such cryptocurrency by themselves in the market without the help of the so-called online trading companies for cryptocurrencies currently appeared in the international markets, who can play dirty tricks to attract and abuse investors.