UNDERSTANDING CRYPTOCURRENCY AND ITS IMPLICATIONS FOR ACCOUNTING IN THE CASE OF EUROPE

This article explores the nature and functioning of cryptocurrencies and their implications for accounting practices within the European context. As digital currencies become more integrated into financial systems, accounting professionals face challenges in classifying, measuring, and reporting crypto-assets. The study examines regulatory approaches in various European countries and evaluates how international accounting standards (such as IFRS) are being adapted to accommodate these new digital assets. Furthermore, it highlights the risks and opportunities cryptocurrencies present for businesses, regulators, and auditors, while proposing a set of recommendations for developing a consistent and transparent accounting framework for digital assets across Europe.