As crypto-assets enter a new crypto winter, the temptation is to relegate crypto assets (and blockchain) to the backburner, and that would be a disservice to the accounting profession as well as the investors seeking to allocate capital to this fast-growing asset class. While crypto-assets have moved far beyond simply discussing bitcoin price volatility, Certified Public Accountants (CPAs) would be forgiven for remaining focused on the implications of said volatility. Given the dramatic drawdowns in prices across the crypto sector, the implosion of several prominent crypto banking protocols, and increasingly negative sentiment, allocating even more time to crypto might seem like an odd choice.

That said, and even during the current crypto winter, the pace and prevalence of crypto adoption continue to accelerate almost unimpeded. With the number of individuals using crypto assets numbering in the hundreds of millions, with a billion total users in many medium-term forecasts, the likelihood of client questions around crypto is only going to increase. CPAs play an important role in the marketplace, serving as a trusted experts able to analyze, communicate, and report financial results. In addition, many CPAs play a key role in how entrepreneurs, investors, and businesses make decisions for the future, allocate capital in the present, and locate new market opportunities.

In other words, CPAs need to – more than ever before – be on top of crypto trends to assist both their colleagues and external clients. Let’s take a look at some of the items that should be top of mind for accounting professionals even as crypto prices continue to struggle.

Adoption is widespread. Something that differentiates the current crypto landscape from previous years is the ease with which individuals and institutions are able to get involved. With major trading platforms allowing retail investors to invest and trade crypto, and virtually every financial institution developing and/or offering crypto-related products and services, the ease with which crypto can be accessed continues to increase. As the scope of crypto adoption expands and further develops, clients will be looking for some expertise and guidance as to how to best integrate these instruments into business operations.

Entrepreneurs might want to start accepting crypto payments in order to attract new customers, which is always beneficial, but they are going to have questions that include the following. How does integrating crypto into the business impact the bottom line? Are there insurance considerations and plans that need to be updated once crypto is introduced? What is the best way to report and communicate this information to investors and creditors?

CPAs might not have all the answers, but can (and should) help clients address them.

Tax planning. No conversation about CPAs and crypto would be complete without mentioning the tax implications of dealing with crypto-assets. Seemingly a straightforward topic – assume every transaction, transfer, or exchange is taxable – that can also become quite complicated as more advanced crypto assets applications are introduced. While specific court cases highlight the ambiguity around staking and block rewards, there are whole swaths of the crypto landscape that CPAs can help clients get a better understanding of.

For example, and especially in the aftermath of the current price drawdowns that have dominated crypto headlines recently, there are tax and tax-related investing opportunities that CPAs should be sure to inform clients about. These include – due to the current IRS classification of crypto – the non-applicability of the wash sale rule, although this opportunity may be rescinded at some point. In addition, the tax implications of decentralized finance (Defi) income and expenses, as well as the reality that the same non-fungible token (NFT) can be taxed differently depending on the situation also create numerous questions that CPAs can help address.

Put simply, crypto tax planning is a complicated and fast-growing area that shows no sign of slowing down.

Cybersecurity. The importance of robust cybersecurity cannot be overstated, and every accounting professional is well aware of this fact. CPAs routinely handle some of the confidential and valuable data that an organization has; the continuing proliferation of crypto-assets is only increasing the importance of this knowledge. Even something as seemingly simple as offering to accept crypto as payment from customers raises a bevy of cybersecurity-related questions.

Which third-party vendor will be selected to assist the client with this plan? How is due diligence conducted on the vendor and implementation staff in such a fast-growing space? Does the crypto payment tool interoperate correctly with the rest of the technology stack? Will the firm in question hold onto the crypto received, convert it immediately to fiat, or select a middle path? All of these questions have a direct financial statement impact but are also topics that influence the current and future work of CPAs.

Technology drives and impacts virtually every aspect of every business, and cryptocurrency implementation simply adds to this already complicated landscape. Complicated situations, however, are also opportunities for motivated and proactive practitioners.

General interest in crypto assets from an accounting perspective tends to mirror the price of bitcoin and general sentiment as well as peaking around tax season. An understandable pattern, but one that forward-looking CPAs should seek to amend. CPAs play pivotal roles in the business lives of many entrepreneurs and business owners, and – at a larger scale – provide need confidence in the data reported by organizations to the marketplace. Cryptoassets of all kinds are continuing to expand and proliferate in the financial space, and CPAs are uniquely well-positioned to leverage these emerging opportunities for themselves and their clients.

Crypto questions abound, and this creates an exciting space for the profession to provide expertise, increase transparency around this data, and help clients make better business choices.