Crypto Accounting Under GAAP & IFRS: A 2025 Guide for Finance Teams

Why Crypto Accounting Matters for Modern Finance Teams

Not too long ago, crypto lived on the fringes — a speculative play, a side hustle, something you might buy and forget. Fast forward to today, and digital assets are on corporate balance sheets, powering payroll, and shaping treasury strategies.

That shift has made crypto accounting one of the biggest challenges finance teams now face. Unlike fiat, crypto doesn’t slot neatly into GAAP or IFRS frameworks. Every wallet transaction raises questions: Is this an intangible asset? Inventory? Property? Taxable income?

If you’ve been asked to “figure out the books” for a growing crypto stack, you’re not alone. This post will walk through:

• How crypto accounting under GAAP and IFRS actually works
• Where crypto tax reporting trips up finance teams
• Best practices for digital asset accounting and compliance
• Why strong accounting is essential for managing a crypto treasury

GAAP vs. IFRS: How Do They Treat Crypto?

Not all tokens are treated the same way. How you account for them depends on what they are and how your business uses them.

Here’s the high-level rundown:

Under GAAP

Most cryptocurrencies — Bitcoin, ETH, stablecoins — are treated as intangible assets with indefinite lives.

That means:

• You record them at cost.
• If value drops, you write it down.
• If value rises, you can’t write it up until sold.

It’s a conservative approach, and yes, it means your books might look worse than reality if your assets appreciate.

Under IFRS

IFRS offers a bit more flexibility. Crypto is also typically treated as an intangible asset, unless it’s actively traded as inventory (more on that below).

However, under IAS 38, revaluation models are allowed for intangible assets with an active market. That means:

• You can write up the value of your crypto holdings (after any impairment), as long as there's a reliable market price.
• Gains go to other comprehensive income (OCI), unless realized.

This difference can significantly impact your financial reporting and KPIs. Especially for multinational firms reporting under both GAAP and IFRS.

👉 This is where crypto accounting under GAAP and IFRS becomes a critical finance skill, especially for global treasury teams.

What if It’s Inventory?

IFRS offers another route: under IAS 2, crypto can be classified as inventory if:

• It’s held for resale (i.e. a crypto exchange, broker, or trading firm), and
• Your business is in the business of buying and selling crypto.

In that case, you can measure it:

• At lower of cost or net realizable value, or
• At fair value less costs to sell, if you’re a crypto broker-dealer (as permitted under IAS 2 para 3(b))

⚠️ Reminder: This classification hinges on your business model. You can’t just label ETH as “inventory” because it sounds better because regulators will want to see that it aligns with how you operate.

Crypto Valuation: Choosing Your Pricing Source

Both GAAP and IFRS require you to use reliable, observable market prices, but there’s no “official” closing price for crypto. Here’s what smart teams are doing:

• Use trusted pricing feeds (CoinMarketCap, CoinGecko, or institutional feeds like Kaiko or Chainlink).
• Capture consistent snapshot timing — typically midnight UTC or local end-of-day.
• Keep detailed records of pricing source, timestamp, and valuation logic — especially for audit support.

If you're under IFRS and using the revaluation model, this gets even more important, since price changes will affect your OCI.

Crypto Tax Reporting for Finance Teams

It should come as no surprise that crypto tax rules vary wildly by region.

In the U.S.

The IRS treats crypto as property. Every transaction can trigger:

• Capital gains/losses
• Ordinary income (from staking, mining, or airdrops)
• Compensation tax (for payroll in crypto)

Under International Regimes (IFRS jurisdictions)

Tax authorities in IFRS-aligned countries (e.g. UK, Singapore, Australia) may treat crypto as:

• Property or commodity, with capital gains/losses
• Income, when received (e.g., from mining, staking, airdrops)
• VAT/GST-applicable, depending on whether it's used as a “payment token”

For finance teams managing cross-border treasuries, tax reporting is one of the biggest headaches. That’s why “crypto tax reporting for finance teams” is a growing niche in accounting tech, with platforms now built to automate reconciliations.

Best Practices for Internal Controls (IFRS or GAAP Alike)

Whether you’re a startup just getting into crypto or an enterprise with a nine-figure treasury, some best practices apply across the board.

1. Separate Wallets & Use Strong Custody Controls

• Keep operational, payroll, and treasury wallets separate.
• Implement multi-sig or MPC custody so there is no single point of failure.

2. Treat Transactions Like Wire Transfers

• Build approval workflows.
• Require multiple sign-offs for high-value moves.

3. Automate Reconciliation

Platforms like Bitwave, Cryptio, or Ledgible help you:

• Sync wallet activity with accounting software
• Track cost basis and fair value
• Generate audit-ready reports

4. Document Everything

From wallet creation to tax methodology, leave an audit trail. Transparency reduces both regulatory risk and investor friction.

Crypto Accounting for Startups

A lot of startups think they’re too small to worry about compliance. Investors and auditors don’t see it that way. Even early on, you should be ready to answer questions like:

• How do you secure wallets?
• What accounting policies are you following?
• Are you aligned with GAAP or IFRS?

The point is simple: crypto accounting for startups isn’t just about avoiding penalties, more so proving your credibility. Clear processes show maturity, and that makes fundraising easier.

The tricky part? Standards are still evolving. Both the FASB (U.S. GAAP) and IASB (IFRS) are reviewing how crypto should be handled, but until new rules are in place, the best teams stay ahead by:

• Disclosing their crypto policies openly in financial statements
• Working with auditors who actually understand digital assets
• Documenting every accounting decision and the “why” behind it

Proactivity goes a long way. It lowers risk, keeps you audit-ready, and shows investors that you take governance as seriously as growth.

How Accounting Ties Into Treasury Management

Here’s where it all comes together:

• Treasury management is about strategy: allocating, protecting, and growing digital assets.
• Accounting is about structure: ensuring every move is tracked, reported, and compliant.

If you’re exploring automated crypto treasury workflows — tools that handle deposits, withdrawals, and signatures securely — you’ll need accounting processes to back them up. Without strong books, even the best treasury system fails under audit.

That’s why we see crypto accounting as a supporting pillar of treasury management. Together, they create financial infrastructure that’s not just agile, but also resilient and regulator-ready.

Final Word: Crypto Finance Is Growing Up

Crypto finance is maturing fast. Finance leaders now need to master not just portfolio management, but crypto accounting under GAAP and IFRS, tax reporting, and compliance controls.

The teams that get this right are gaining a signifinicant edge because:

• Investors trust you more
• Regulators leave you alone
• Teams can move faster

Whether you’re handling $500K in stablecoins or $50M across chains, digital asset accounting best practices are no longer optional. They’re your foundation for growth.

👉 Want to see how accounting ties into the bigger picture? Check out our Ultimate Guide to Crypto Treasury Management →