Crypto Accounting Services in Dubai, UAE

Accounting For Crypto in Dubai

Cryptocurrency, including bitcoin as a part of the cryptographic assets, has attracted a lot of attention lately around the globe because of the consistent increase in its value and the potential for volatility. Due to its specific features, investors find it profitable to invest in such assets. Many exchanges in the UAE have taken the lead in offering investors the opportunity to invest in cryptographic assets. These cryptographic assets are evolving rapidly, which makes their accounting, measurement, disclosure, and recognition a complex activity. At present, there are no specific accounting standards that define the accounting application for evolving digital assets. But to make it simpler and less complicated, CDA can help in applying the existing standards to the cryptographic assets as per the notification by the concerned authority.

What is meant by a cryptographic asset?

Cryptographic assets, in simple terms, are digital representations that are transferrable by nature and have a unique design that eliminates their replication and copying. Blockchain technology facilitates the transferability of cryptographic assets in the most secure manner. It is a technology in which all peer-to-peer transactions are recorded in a decentralised ledger and all vital transaction information is encrypted.

Still, there aren't any legal definitions for cryptographic assets. Another point to keep in mind is that there are many subsets of cryptographic assets, the most common of which is a cryptocurrency, which includes bitcoin, ether, etc. These subsets are commonly used as a medium of exchange nowadays. In UAE too, many entities have started recognising bitcoin as a medium of exchange for transactions. 

Relevance of Cryptographic assets in Dubai UAE

Dubai, being the hub for many business industries, has taken the initiative to identify cryptocurrency as a medium of exchange. The financial services regulatory authority of the Abu Dhabi global market was the first authority to define rules and laws regarding the transaction of cryptocurrency; hence, it gave a boost to the investment and use of cryptocurrency for trade. The respected prime minister of Dubai has also approved the Virtual Asset Regulatory Authority (VARA). VARA is the authority in Dubai that will be monitoring cryptocurrency transactions. Functions of VARA may include, monitoring the transaction to avoid price manipulation, providing strong protection to the beneficiaries' data, and licencing and regulating the trade of cryptocurrency on the mainland and in the free zone except for the Dubai International Financial Center. It also has the right to take any action against the violators using virtual assets. 

The growth of cryptocurrency in the UAE is at its initial stage, but due to its acceptance and approval by the authorities, it is likely to increase rapidly in the coming years. The younger generation is more into the use of cryptocurrency; hence, it is all directed toward a single destination where digitalization is at its peak with digital assets. Now the next challenge is whether there are any accounting standards for cryptocurrency transactions.

Accounting for cryptocurrency in Dubai, UAE

Due to the increase in the acceptance of cryptocurrency in Dubai, UAE, the establishment of proper standards to be applied to cryptocurrency transactions is of utmost importance. But in the present scenario, there are no new standards established that focus on cryptocurrency transactions. Hence, the firms will find it difficult to record these transactions. CDA can help such firms monitor and record the transactions of cryptocurrencies, as it has a team of experts who are well aware of IFRS and IAS standards. We can help struggling firms by implementing suitable standards for virtual assets in the transaction. There are still many complications pertaining to cryptocurrency and its accounting in Dubai and other parts of the world, so it is always best to find the assistance of expert accountants to deal with such complications. Even though many firms in Dubai, UAE, have started to consider it as a medium of exchange, it is not recognised as legal tender yet, as IAS 32 and IAS 7 have not yet clearly specified the legality of the cryptocurrency. The accounting standards used for cash cannot be used for cryptocurrency, as it is neither an equity security nor a debt security. 

Nonetheless, many professionals may regard IAS 38 as an appropriate standard for cryptocurrency that defines intangible assets. There are certain additional standards that may apply to cryptocurrency in Dubai, hence, CDA can help you go through such standards and account for the use of cryptocurrency.

Call us today to avail top-notch crypto accounting services in Dubai

How can CDA help you in accounting for Cryptocurrency in Dubai UAE?

The non-establishment of specific accounting standards for cryptocurrency has made its accounting more rigid, which may not seem like an easy task for the firms that perform transactions using it. However, one of the top crypto accounting firms in Dubai, CDA can provide the required assistance to the clients as per their requirements, as they have a well-trained team of experts who are well aware of the assessment of IFRS standards and can apply the apt standards for the accounting of the cryptocurrency. Being well aware of the rules and regulations in Dubai, UAE, regarding cryptocurrency makes it easy for the CDA to provide crypto accounting services in Dubai to its clients.

Because of cryptocurrency's flexible nature and continuous upgrade, it necessitates critical assessment and detailed evaluation by experts in order to perform efficient accounting for it. CDA's inborn potential to solve challenges stringently makes it the best accounting firm, which always looks up to provide solutions where it counts.

Challenges CDA will help you to tackle

1. Cryptocurrency has a characteristic of fluctuating values, which makes its accounting more troublesome, but CDA can help you solve it by continuously monitoring the change in the value of cryptocurrency.

2. The firms will have to spend a lot of time studying the accounting principles and standards as there is no specific standard established for accounting of cryptocurrency, but CDA and its team, who are well aware of the standards, can help you save time and ensure efficient accounting of cryptocurrency.

3. Every cryptocurrency is unique in its own way, and there is a large variety of currencies in it, which makes it more complicated to be accounted for, but CDA, with its stringent principles, can help you get your statements accounted for easily.

4. Accounting for cryptocurrency will be a time-consuming task for the firms as it is a new concept in Dubai; hence, they may find it a hectic task. CDA, with its professional experts recognised for providing excellent services, can help solve all the challenges related to accounting.

Reach out to us for crypto accounting services in Dubai, UAE.