There has been a rise in the demand for blockchain-based smart contract development platforms and language implementations. On the other hand, smart contracts and blockchain applications are generated using non-standard software life cycles, which means that, for example, distributed applications are rarely updated, or bugs are fully addressed by releasing a newer version, leading to security flaws and challenges for users to adopt the technology. Smart contracts have gained significant attention due to their potential to automate and secure various transactions in diverse domains. However, the increasing adoption of smart contracts has also raised concerns about security vulnerabilities and potential risks. In this paper, an overview of smart contracts was discussed in detail. It further distinguished and compared smart contracts security with conventional security regarding security, privacy, communication channel, etc. Different platforms for smart contracts, such as Bitcoin, Ethereum, Counterparty, Stellar, Monax, and Lisk, are also discussed in this paper. Some proposed techniques are used in different areas for handling security threats in smart contracts. In addition, a taxonomy of the smart contracts security application was proposed, which attempts to solve some of the flaws and inadequacies in smart contracts. The study also provides a comprehensive smart contracts security scenario with different techniques. Lastly, the possible attacks posed by threats and vulnerabilities of the smart contracts are provided. The security threats and vulnerabilities addressed in this study are unique to smart contracts.
Cryptocurrencies are highly anonymous, poorly regulated in many countries, and can issue tokens at nearzero cost using existing platforms. As a result, there is no shortage of fraudulent cryptocurrencies that raise large sums of money through hype, then disappear and do little actual project development. The prevalence of fraudulent cryptocurrencies not only harms investors but can also prevent sound companies from raising funds. To remedy this situation, it would be useful to develop a method to determine whether a particular cryptocurrency is fraudulent or not. The information in cryptocurrency whitepapers could be useful in detecting fraudulent cryptocurrency, but there are no clear criteria to evaluate the reliability and feasibility of their content. Besides, most studies analyzing whitepapers focus on the success or failure of ICO ”fundraising” and fail to adequately consider the ongoing development and operation of the project. On the other hand, a few studies have attempted to detect fraudulent cryptocurrencies from whitepapers, but their results suggest the possibility of identifying fraud with high accuracy. The objective of this paper is to build a model to detect fraudulent cryptocurrencies from whitepapers using natural language processing and machine learning techniques, and to verify whether the model has sufficient predictive accuracy in detecting fraud, after solving the problems of previous studies. We collected 250 cryptocurrency whitepapers consisting of 150 frauds and 100 controls, extracted features, and applied multiple machine learning methods to classify frauds and controls. Then analyzed the feature differences between the fraud and control groups, and examined the tendency of fraudulent cryptocurrency whitepapers. We observed 0.841 F1 Score for the best prediction model, which outperforms previous studies. Furthermore, the performance of K-Means, which is unsupervised learning, was not significantly lower than that of other machine learning methods, and a certain level of accuracy was confirmed. Therefore, there is a possibility that K-Means can be used in cases where fraud criteria cannot be clearly defined. We also found that fraudulent cryptocurrency whitepapers used relatively more business and finance-related words. On the other hand, whitepapers in the control group tended to use more blockchain-related technical terms.
Flavius Valentin Jakubowicz, Ionela Munteanu, Mirea Marioara, Financial auditor, Constanta, Romania
The study analyses 1,757 peer-reviewed publications indexed in WOS between 2015 and May 2023, with a common theme of analyzing cryptocurrencies from a financial point of view.The study was conducted using bibliometric and exploratory analytical methods, with particular attention to the dynamics of the research directions over time.The results have resulted in the creation of comprehensive maps of hot research topics and new research trends for crypto assets.Furthermore, the mapping of international cooperation between the researchers included in the analysis revealed remarkable results.The study highlights some valuable insights into the profiles of individuals and companies who own and use cryptocurrencies.The analysis indicates the recent focus of research guidelines on topics such as inefficiency, risk or uncertainty in cryptocurrency transactions.With the help of the principle of prudence for accounting and audit, empirical studies in this direction require the development and active international cooperation between researchers and researchers and the business community.
Tarang Rajpal, Hrishikesh Patil, Varad Deshmukh, Dhananjay Pai · 5 authors
ChainBank is an innovative decentralized autonomous organizational system specifically designed to support students in improving their financial habits. Students have the opportunity to invest their money in a distributed pool and receive tokens in return, while also gaining the ability to actively engage in decision-making through voting on proposals. ChainBank offers its members a powerful voting feature, enabling them to collectively make important decisions regarding the platform’s operations. ChainBank’s primary objective is to target regular students who often struggle with irregular financial habits. Engaging with ChainBank helps students to develop essential skills and knowledge that will positively impact their financial well-being both now and in the future.
SITI KHALILAH BASARUD-DIN, Nik Safiah Nik Abdullah
Bitcoin (BTC) was developed as a digital currency to facilitate online payment transactions between one party or individual and another without using a third party. However, the use of BTC can also be misused for money laundering, fraud in investment schemes, engaging in cyber-crimes, funding activities, etc. Additionally, the highly complex method of calculating BTC makes BTC irrelevant as a measure of value. Although there are inherent advantages and disadvantages to using BTC, it can be subject to zakat. This study explores how zakat institutions can receive zakat in Bitcoin (BTC) transactions. BTC has both advantages and disadvantages, including potential misuse for illegal activities and vulnerability to security breaches. The study employs a qualitative method, including interviews with zakat institutions and BTC practitioners, and document analysis. The aim is to create a model for zakat institutions to receive donations in BTC, contributing to the management of zakat and adapting to technological changes. The study's findings can help prepare a strategy for receiving zakat in BTC and addressing potential challenges. By bridging the literature gap, the study offers new insights and perspectives on bitcoin as a zakat payment asset. Its findings can be valuable for policymakers, religious scholars, and practitioners in the realm of Islamic finance and zakat management. Ultimately, the research seeks to improve the early preparation and strategizing of zakat institutions in the face of evolving donation methods.
Abstract The tokenization of financial assets using blockchain technology is a transformative process that allows for the fractionalization of ownership, thereby creating more accessible investment opportunities compared to traditional financial assets. Recent research has shown that token offerings are subject to moral hazard and fraud. In response to these challenges, we propose a novel token design that is compliant with the legal framework of Switzerland. Our design is characterized by its flexibility and can represent any yield or dividend-bearing asset, such as stocks, bonds, or rental income from real estate. Further enhancing its compatibility, the token conforms to the Ethereum ERC-20 standard, enabling seamless integration with existing decentralized finance solutions. Another contribution of our token design is its innovative approach to dividend distribution. Unlike traditional models that distribute dividends based on ownership at the time of payment, our token design distributes dividends based on holding times. This distinctive approach promotes smoother asset prices between dividend payouts by eliminating the need for compensation payments. Our token prototype represents a potential starting point for future research on leveraging the opportunities of decentralized finance.
This dissertation discusses investment structures in startups operating in the decentralized finance sector. Currently holding second place in the decentralized finance market, Brazil has been standing out for the projects being developed on its territory and for the volume of investments received by startups operating in the DeFi market. Throughout this work, we sought to demonstrate the evolutionary process of startups, from the idea's conception to its implementation, and to present the path taken by founders and investors, culminating in the celebration of an investment instrument. In addition to the theoretical exposition, this dissertation aimed to bring the investment process into practical conception by exposing contractual clauses commonly used in instruments signed for this purpose. This work expects to stimulate the deepening of the study of the decentralized finance market, which is currently under legal and regulatory scrutiny from the Brazilian Central Bank and the Brazilian Securities and Exchange Commission
Hayati Mohd Yusof, Zulnurhaini Zolkaply, Muhammad Ashraf Fithri Anuar
Cryptocurrency or the virtual currency is the latest development in investment. It is a medium to exchange goods and services for virtual payments, an alternative diversification tool for investors and it features an attractive store of value for wealth creation. There was an attempt to urge the Malaysian authority to legalise cryptocurrency recently in order to attract the youth’s involvement in it. Even though there was an overwhelming interest detected among the country’s young investors, these groups have held back their interest due to the fear of the cryptocurrency’s unknown and vague territories. To date, cryptocurrency studies involving developing countries like Malaysia are still lacking as most past studies were conducted in developed countries. This research is undertaken to examine the interest and awareness of private undergraduate students on cryptocurrency’s potentials as virtual money and wealth creation. Based on the analysis conducted, about more than half of the potential investors admitted that they had little knowledge of the virtual currency despite the high probability of them showing interests to make cryptocurrency investments once they graduated or started working. These potential investors also believe that cryptocurrency investments help to improve the effectiveness, profitability and the value of their monetary investments. The contribution of this quantitative research lies in the youngsters’ perceptions of their perceived value and perceived risk (Consumer Behaviour Theory) towards their intention to adopt cryptocurrency. Apart from educating the youth about the virtual currency, this research seeks more regulators’ attentions in managing cryptocurrency developments and its transparency in Malaysia
With the advent of the digital age, traditional lifestyle activities, such as reading books, referencing recipes, and enjoying music, have progressively transitioned from offline to online. However, numerous issues plague the conventional approach to digital copyright protection. This is especially true in the realm of recipe protection, where the rights and interests of original creators are inadequately safeguarded due to the widespread dissemination of a large number of recipes on the Internet. This primarily stems from the high costs of gathering evidence, incomplete coverage of evidence collection, and the inability to identify and halt infringement activities in a timely manner during the process of traditional digital copyright protection. Therefore, this study designs and implements a blockchain-based digital recipe copyright protection scheme to address the issues of insufficient legal evidence and cumbersome processes in traditional digital copyright protection. First, we enhance standard short text similarity calculation method SimHash, boosting the accuracy of text similarity detection. We then utilize the decentralization, immutability, time-stamping, traceability, and smart contract features of blockchain technology for data privacy protection. We employ the Interplanetary File System (IPFS) to store raw data, thereby ensuring user privacy and security. Lastly, we improve the proxy voting node selection in the existing delegated proof of stake (DPOS) consensus mechanism. According thorough evaluation and empirical analysis, the scheme effectively improves the accuracy of text similarity detection. Simultaneously, the enhanced DPOS mechanism effectively rewards nodes with excellent performance and penalizes nodes exhibiting malicious behavior. In this study, we successfully designed and implemented an innovative digital recipe copyright protection scheme. This scheme effectively enhances the accuracy of text similarity detection; ensures the privacy and security of user data; and, through an enhanced DPOS mechanism, rewards well-performing nodes while penalizing those exhibiting malicious behavior.
In recent years, blockchain technology has introduced decentralized finance (DeFi) as an alternative to traditional financial systems. DeFi aims to create a transparent and efficient financial ecosystem using smart contracts and emerging decentralized applications. However, the growing popularity of DeFi has made it a target for fraudulent activities, resulting in losses of billions of dollars due to various types of frauds. To address these issues, researchers have explored the potential of artificial intelligence (AI) approaches to detect such fraudulent activities. Yet, there is a lack of a systematic survey to organize and summarize those existing works and to identify the future research opportunities. In this survey, we provide a systematic taxonomy of various frauds in the DeFi ecosystem, categorized by the different stages of a DeFi project's life cycle: project development, introduction, growth, maturity, and decline. This taxonomy is based on our finding: many frauds have strong correlations in the stage of the DeFi project. According to the taxonomy, we review existing AI-powered detection methods, including statistical modeling, natural language processing and other machine learning techniques, etc. We find that fraud detection in different stages employs distinct types of methods and observe the commendable performance of tree-based and graph-related models in tackling fraud detection tasks. By analyzing the challenges and trends, we present the findings to provide proactive suggestion and guide future research in DeFi fraud detection. We believe that this survey is able to support researchers, practitioners, and regulators in establishing a secure and trustworthy DeFi ecosystem.
The banking sector has been greatly impacted by the technological outburst of the twenty-first century. Bitcoin, the first crypto asset created on block chain technology, has firmly established itself in the financial sector since its introduction in 2009. The market capitalization of uncontrolled crypto assets has grown at an unprecedented rate, posing a threat to the banking industry and the economy. Illegal activities such as terrorist funding and money laundering find refuge in the unregulated world of crypto assets. To keep up with the demands of the computer-savvy Generation Next, banks worldwide have adopted various technologies and improved their service standards. However, central banks continue to follow the traditional system of issuing hard currency bank notes, which do not match the aspirations of most end users. As a result, Central Banks worldwide are currently brainstorming the introduction of a Central Bank Digital Currency (CBDC). This study aims to explore the theoretical aspect, feasibility, and status of CBDC. Four Central Banks have already issued CBDC, while others are in the process of doing so. Block chain under Distributed Ledger Technology is the most suitable and widely accepted platform for issuing CBDC. Robust computer security measures must be established to prevent hacking and ensure monetary stability for CBDC. During the initial stages of CBDC implementation, hard currency banknotes and CBDC will run parallelly until any possible initial hiccups are resolved. CBDC has the potential to boost banking and finance, trade finance, and cross-border international settlements.
Investment is a driving factor for a country's economic development. One form of investment that is often used is bitcoin investment. This type of investment is an investment alternative that is easily accessible to the wider community. This study aims to find out whether the causes of many cryptocurrency investors are FOMO. This study uses a qualitative research design with a case study approach. Cryptocurrency investments made by new informants are in the trial and error stage so the money invested is not large, only in the hundreds of thousands to millions. The nominal is not that big but it means a lot if it's not used properly. The cause of FOMO among novice investors in investing in cryptocurrency is that many investors have already invested so they want to participate in these investment activities.
Smart Contracts are a technology that leverages blockchain to automate and secure transactions. They are commonly used to manage transaction fees and mining rewards within blockchain networks, and can be programmed to execute automated transactions based on predetermined conditions. The use of smart contracts offers numerous benefits for small and medium-sized enterprises, including reduced transaction costs, improved transparency and accountability, and enhanced security and efficiency. The deployment of smart contracts in a company can also lead to increased automation of transactions, further streamlining processes and reducing the potential for human error.
Though few blockchain-based payment services are currently available, this is expected to change in 2018, as investment has poured in from banks to explore blockchain’s potential. This creates the potential for developing live blockchain payment processing solutions and trade finance deployments. However, current blockchain technology is unsuitable for real-world applications owing to various limitations. Bitcoin is simply a “virtual” currency or “cyber” money because blockchain does not support owner identification. This study combines credit card payments and a blockchain network to overcome this limitation. If there is no connection between the credit card payment system and the blockchain network, blockchain ciphers like Bitcoin will remain a “virtual” currency or “cyber” money forever. This paper presents a challenging study involving blockchain and financial technology (fintech). Furthermore, we must consider the integration approach in terms of performance. Even the performance of state-of-the-art blockchain platforms cannot meet fintech application standards in the real world. In order to resolve performance issues related to a blockchain network while processing credit card transactions, we exploit the overlay network concept to separate the credit card network from the relatively slow blockchain peer-to-peer (P2P) network. In this paper, we presented the details of the data preparation, assessment metrics, and evaluation of our method. We also described the experimental results for the fintech platform using blockchain smart contracts.
Adi Nugroho Susanto Putro, Sabil Mokodenseho, Nur Alim Hunawa, Muhatir Mokoginta · 5 authors
In the digital age, ensuring the security and reliability of information systems is a paramount concern for organizations. This research investigates the potential of blockchain technology to enhance information system security and reliability within the dynamic landscape of Indonesian start-up companies. By employing a mixed-methods approach, combining qualitative interviews and quantitative surveys, this study explores the current state of information system security practices, assesses the challenges faced by start-ups, and evaluates perceptions regarding the adoption of blockchain technology. The qualitative findings highlight the existing security measures, challenges, and potential benefits associated with blockchain. The quantitative results provide insights into security practices and willingness to adopt blockchain. Through the integration of these findings, the study offers practical recommendations for enhancing information system security and reliability in the context of start-ups, while considering the challenges of blockchain adoption. This research contributes to the understanding of the symbiotic relationship between technology adoption and information security, offering guidance for start-ups, policymakers, and researchers.
Aitizaz Ali, Bander Ali Saleh Al‐rimy, Ting Tin Tin, Saad Altamimi · 6 authors
Precision medicine has emerged as a transformative approach to healthcare, aiming to deliver personalized treatments and therapies tailored to individual patients. However, the realization of precision medicine relies heavily on the availability of comprehensive and diverse medical data. In this context, blockchain-enabled federated learning, coupled with electronic medical records (EMRs), presents a groundbreaking solution to unlock revolutionary insights in precision medicine. This abstract explores the potential of blockchain technology to empower precision medicine by enabling secure and decentralized data sharing and analysis. By leveraging blockchain's immutability, transparency, and cryptographic protocols, federated learning can be conducted on distributed EMR datasets without compromising patient privacy. The integration of blockchain technology ensures data integrity, traceability, and consent management, thereby addressing critical concerns associated with data privacy and security. Through the federated learning paradigm, healthcare institutions and research organizations can collaboratively train machine learning models on locally stored EMR data, without the need for data centralization. The blockchain acts as a decentralized ledger, securely recording the training process and aggregating model updates while preserving data privacy at its source. This approach allows the discovery of patterns, correlations, and novel insights across a wide range of medical conditions and patient populations. By unlocking revolutionary insights through blockchain-enabled federated learning and EMRs, precision medicine can revolutionize healthcare delivery. This paradigm shift has the potential to improve diagnosis accuracy, optimize treatment plans, identify subpopulations for clinical trials, and expedite the development of novel therapies. Furthermore, the transparent and auditable nature of blockchain technology enhances trust among stakeholders, enabling greater collaboration, data sharing, and collective intelligence in the pursuit of advancing precision medicine. In conclusion, this abstract highlights the transformative potential of blockchain-enabled federated learning in empowering precision medicine. By unlocking revolutionary insights from diverse and distributed EMR datasets, this approach paves the way for a future where healthcare is personalized, efficient, and tailored to the unique needs of each patient.
The publishing media industry faces many challenges such as outdated innovation mechanisms, strict information control, low quality of content creation, unfair distribution of content, and poor management of content rights, etc. Media decentralized autonomous organization (DAO), a blockchain-based media organization, offers innovative solutions to these problems through its decentralized nature, new organizational form, and governance. This paper compares the differences between the traditional publishing media industry and media DAOs, discusses the changes that media DAOs have brought to the publishing media industry, and explores future trends and challenges in the publishing media industry. The goal is to guide the publishing media industry to break away from stereotypical thinking and further explore the room for development.
The real industry is crucial sector of the world wide financial system, with significant economic, social and environmental implications. However, real estate transactions are often slow, complex and costly and can be prone to fraud errors, which can lead to significant financial losses and legal disputes. This paper proposes the adoption of blockchain technology in real estate cadastral systems as a solution to the challenges encountered in managing property ownership and transactions. We have described the implementation of our prototype called REMS (Real Estate Management System) and we have presented the deployment of smart contracts in Ethereum platform. Based on measurement, benchmarks and other observation of the system, we have evaluated the server usage of the blockchain network and decided whether Blockchain-as-a-Service (BaaS) should be involved or not in our system. The study results demonstrate the successful implementation of a real estate management system (REMS) using blockchain technology and Ethereum's smart contracts. This study is important because it confirms that similar solutions can be implemented in other areas of public administration, where the structure of the work is similar, i.e. where we deal with issuing documents to citizens.
М. А. Абрамова, Natalia Kunitsyna, E. I. Dyudikova
The rapid nature of the modernization of monetary turnover, accompanied by geopolitical risks against the background of post-pandemic economic recovery and the regionalization process, no longer just arouses the discursive interest of society, but becomes an indispensable condition of the new reality. The process of money turnover transformation by introducing digital currencies into circulation in the wave of digitalization among world powers lagging behind the evolving environment of the cryptocurrency industry is developing into a process of formalization of metaverses and penetrates deeper into the socio-economic reality. The problem of the Russian practice of developing the payment environment consists in its catching-up character, caused by the spontaneous formation of the digital society, resulting in the expansion of the scope of alternative finance outside the legal field. The purpose of the paper is to determine the inherent attributes of the digital trusted environment necessary to ensure digital ruble turnover, based on an empirical study of society’s perceptions about the prospects for using the digital form of the national monetary unit by representatives of various generations. We used systematization, grouping, comparative and content analysis, surveys, and the quota method to achieve the paper’s purpose. The survey involved 35,327 residents from different regions. As a result, the authors revealed the low level of readiness of society for the introduction of the digital ruble as a substitute for cash and cryptocurrency. The paper focuses on the need for an integrated approach to the disclosure of the digital ruble’s value and benefits, which contributes to its successful launch and promotion in the market. The results of the research highlight the importance of correspondence in the digital ruble category “digital currencies”, and also the impossibility of making incorrect decisions in the transformation of money turnover, which leads to the growth of risks of digital inequality, the clash of interests of certain groups of the population in the prevailing behavioral patterns in the form of a cautious attitude to digital finance with insufficient financial literacy.
This study aims to analyze the Indonesian government's policies regarding cryptocurrency transactions and taxation and accounting practices in Indonesia. In addition, this research also conducts literature studies abroad. Commodity Futures Trading Regulatory Agency Regulation No. 13 of 2022 and No. 8 of 2021 concern guidelines for organizing crypto asset physical market trading on futures exchanges to oversee cryptocurrency transactions. Cryptocurrency transactions in Indonesia are considered VAT objects and are subject to income tax. Accountants face a challenge because there is no accounting standard that explains why cryptocurrency must be considered. It is hoped that the Indonesian Accounting Standards Board can conduct discussions related to accounting standards for cryptocurrency. Besides, the government's role is very important in making financial technology policies and systems in order to mitigate the risks of cryptocurrency transactions so that they can benefit investors and the tax system in Indonesia.
Konstantinos Sgantzos, Mohamed Al Hemairy, Panagiotis Tzavaras, Spyridon Stelios
The usage of Large Language Models (LMMs) and their exponential progress has created a Cambrian Explosion in the development of new tools for almost every field of science and technology, but also presented significant concerns regarding the AI ethics and creation of sophisticated malware and phishing attacks. Moreover, several worries have arisen in the field of dataset collection and intellectual property in that many datasets may exist without the license of the respective owners. Triple-Entry Accounting (TEA) has been proposed by Ian Grigg to increase transparency, accountability, and security in financial transactions. This method expands upon the traditional double-entry accounting system, which records transactions as debits and credits in two separate ledgers, by incorporating a third ledger as an independent verifier via a digitally signed receipt. The utilization of a digital signature provides evidentiary power to the receipt, thus reducing the accounting problem to one of the presence or absence of the receipt. The integrity issues associated with double-entry accounting can be addressed by allowing the parties involved in the transaction to share the records with an external auditor. This manuscript proposes a novel methodology to apply triple-entry accounting records on a publicly accessed distributed ledger technology medium to control the queries of LLMs in order to discourage malicious acts and ensure intellectual property rights.
Financial markets have recently suffered from an increased interest of users of cryptocurrencies and decentralized finance solutions. Although Decentralized Finance (DeFi) has been designed based on smart contracts and leave out third-party intermediaries, these platforms sometimes require information from the outside world, such as exchange rates or prices. DeFi Oracles are the link solution between the on-chain world and the off-chain universe. This article describes the oracles, including taxonomy, governance and use cases. Thereafter, it considers their potential and, at the same time, addresses the possible risk that they present, which could impact the future DeFi space.
Abstract Despite the rapid growth of the cyber insurance market in recent years, insurance companies in this area face several challenges, such as a lack of data, a shortage of automated tasks, increased fraudulent claims from legal policyholders, attackers masquerading as legal policyholders, and insurance companies becoming targets of cybersecurity attacks due to the abundance of data they store. On top of that, there is a lack of Know Your Customer procedures. To address these challenges, in this article, we present , an innovative architecture that utilizes Blockchain technology to provide data transparency and traceability. The backbone of the architecture is complemented by Smart Contracts, which automate cyber insurance processes, and Self-Sovereign Identity for robust identification. The effectiveness of ’s architecture is compared with the literature against the challenges the cyber insurance industry faces. In a nutshell, our approach presents a significant advancement in the field of cyber insurance, as it effectively combats the issue of fraudulent claims and ensures proper customer identification and authentication. Overall, this research demonstrates a novel and effective solution to the complex problem of managing cyber insurance, providing a solid foundation for future developments in the field.
The International Financial Reporting Standards (IFRS) do not make explicit provisions, in terms of a specifically dedicated standard, for the accounting treatment of cryptocurrencies. This creates uncertainty, and guidance is therefore required in terms of accounting for such investments. Accounting theory has the potential to provide the foundation for this guidance. This study aimed to determine the most appropriate accounting treatment for cryptocurrencies based on the International Accounting Standards Board’s (IASB) Conceptual Framework for Financial Reporting (as a form of accounting theory) that results in decision-useful information. The research further investigated the proposed accounting treatment in terms of IFRS and sought to determine whether this treatment was aligned with the IASB’s conceptual framework. This qualitative study conducted a non-empirical interpretative analysis of the literature (focusing specifically on accounting theory) to address the research aim. The conceptual framework indicated that the most appropriate way to account for cryptocurrencies was to recognise an asset at fair value. This accounting treatment aligns with accounting for assets under International Accounting Standard (IAS) 2 commodities held by broker-traders and the IAS 38 revaluation model. Addressing the problem of accounting for cryptocurrencies with reference to accounting theory makes this study novel. The guidance provided could reduce uncertainty among entities holding investments in cryptocurrencies and could increase the decision-usefulness of financial information.