Cryptoworth

What do these web3 terms have in common: Memecoins, VARA, Stablecoins, FASB, and Trump? Although they represent vastly different corners of the Web3 space, these topics share one critical link. Accounting and tax experts are bridging the knowledge gap to elevate businesses transacting with these digital assets. Last month, we hosted 4 insightful talks tackling the biggest challenges and opportunities in crypto compliance. Here’s a quick summary so you don’t miss a thing: 1️⃣ Will Stablecoins Be Classified as Securities? Canada’s potential move to classify stablecoins as securities could reshape the global regulatory environment—and drive innovation elsewhere. Regan McGrath, CPA CA and Rajin A. from Metrics Chartered Professional Accounting shed more light on the current scenario. 2️⃣ SoDA: The Framework Transforming Digital Asset Reporting The Statement of Digital Assets (SoDA) is revolutionizing blockchain accounting by bridging traditional standards like GAAP and IFRS with on-chain complexity. Samuel Leichman of Propeller Industries and David Byrd of EY unpack the framework’s evolution and how to get involved as an accountant. 3️⃣ What a Trump Presidency Could Mean for Crypto A crypto-friendly SEC leadership under Trump could ease compliance challenges and fuel innovation, but what risks and opportunities would emerge? Andrea Perlak offers insights on the potential regulatory shift and its long-term impact. 4️⃣ Dubai’s VARA: Setting Global Standards for Crypto Regulation The Virtual Asset Regulatory Authority is leading the charge with agile and innovation-first policies, making Dubai a global hub for Web3 businesses. Joe David from Nephos Group Limited Myna and Shivani Phull from PIXELYNX share their experiences working within Dubai’s regulatory framework. 🎯 BONUS: Don’t Miss Our Upcoming Talk Memecoins Tax: Accounting Practices for Digital Assets with Patrick Camuso, CPA. Learn how to stay compliant while trading or issuing memecoins. Save Your Spot Now. 📖 Catch Up on November’s Insights Explore the full summary of these talks and get the knowledge in order for the last month of 2024.

Memecoins latest volume growth seems fueled by first-time traders but little do they know that every transaction is a taxable event—even if the token value tanks later. In this clip, Patrick Camuso, CPA explains the critical mistake traders make by not setting aside funds for taxes. In this week's talk, learn how to avoid tax chaos and protect your profits. ⤵️

The message on digital asset regulation is clear The Cayman Islands is ramping up the pace for web3 regulation. As we gear up for 2025, let’s explore how the VASP (Amendment) Bill, 2024 positions the Cayman Islands as a leader in the global web3 economy. What makes this bill a game-changer? > Streamlined processes simplify licensing, making it easier for businesses to navigate compliance. > Safeguards for client assets ensure trust with clear rules for segregation and disclosures. More than just regulation, the bill embodies a vision for a balanced approach—one where innovation thrives alongside compliance. For operators in the Cayman Islands, these updates mean greater clarity and confidence moving forward.

There’s Only 30 Days Before Your Accounting Becomes Obsolete Starting January 1, 2025, all digital asset cost basis allocations must change. The universal method will no longer be allowed, and the IRS requires a wallet-by-wallet method under Rev Proc 2024-28. Why should you care? Using outdated methods could lead to mismatches in tax filings, triggering audits or penalties. Here’s how to stay compliant: - Allocate cost basis for each wallet before December 31, 2024. - Use crypto accounting software to streamline the process. - Keep detailed records for every wallet to avoid discrepancies. The clock is ticking, and this one-time safe harbor opportunity is your best chance to transition smoothly. Don’t wait—start preparing today.

This Thanksgiving week, Cryptoworth was proud to co-organize a panel discussion in the Cayman Islands focusing on Foundations, DAOs, and their operational challenges. The session brought together industry leaders to discuss: + The role and benefits of Foundations in the Cayman Islands for structuring and governance. + Best practices for managing their operations efficiently. + Increasingly optimistic regulatory outlook for digital assets. The Cayman Islands’ position as a global hub for web3 innovation makes these conversations crucial. Foundations offer DAOs a clear legal framework to ensure effective governance while navigating evolving compliance standards. A recurring theme in the discussion was the importance of reliable blockchain data for financial close. DAOs and Foundations face unique challenges in reconciling complex transaction records with financial reporting standards. Accurate data is not just a compliance requirement—it’s essential for building trust with stakeholders and ensuring transparency in operations. Why does this matter? As DAOs mature, the need for robust governance, operational clarity, and accurate reporting grows. The Cayman Islands, with its progressive regulatory landscape, is well-positioned to support these needs and help organizations align innovation with trust. A heartfelt thanks to the panelists for sharing their time and insights and to the Blockchain Association of the Cayman Islands and KPMG in the Cayman Islands for joining this initiative to share more knowledge on digital asset governance and financial accountability. Moderator: Gautam Ganeshan, CPA, CA, CFA Panelists: Nilantha Weerasinghe Melissa Lim Richard Pasquin Karel Olivier CA(SA) The panel covered key topics such as: • The lifecycle of crypto entities, from formation and incorporation to domicile considerations • Operational insights into running a DAO, including structure and strategy • Accounting and operational hurdles in the crypto space • Navigating compliance and legal requirements in an evolving industry Thank you Cayman Islands for welcoming us and inviting us to be part of your space.

Keeping up with the rapidly expanding blockchain ecosystem is no small feat. At Cryptoworth, we're committed to equipping accountants with the tools they need to streamline workflows and ensure accuracy. We’re excited to announce five new integrations: B3 Chain: Built on Coinbase's Base, optimized for scalable gaming applications. + Xai Chain: Arbitrum-based and tailored for gaming transactions. + Ape Chain: Supporting the $APE token ecosystem with seamless transaction tracking. + World Chain: Focused on identity-verified transactions for enhanced trust. + Unichain: A DeFi powerhouse built on Optimism's Superchain. These additions mean more efficient journal entries, quicker discrepancy reconciliation, and accurate cost basis tracking for high-volume environments like gaming and DeFi. Our platform now supports over 1,000 data sources, making Cryptoworth the most comprehensive solution for crypto accounting.

Everyone’s talking about memecoins. The hype. The million-dollar flips. But here’s the thing: most investors are ignoring a ticking time bomb. Taxes. Platforms like Pump.fun make it easy to launch and trade memecoins. A few clicks, a catchy name like CHILL, PNUT, UPONLY, and you’re in the game. But what happens when the bull market fades, and the taxman comes knocking? If you’re not tracking every trade or calculating your tax liability, you could be in for a nasty surprise. Join Patrick Camuso, CPA, one of the first CPAs in crypto, as he breaks down the chaos and shares a step-by-step guide to keeping your accounting (and sanity) intact in the world of meme coins. 📅 Wednesday Dec. 4th. 11 am EST | Save your spot here:

Digital asset reporting is complex—are your systems ready to handle it? Traditional accounting frameworks struggle with digital assets, often failing to clearly show liquidity, valuation, or restrictions. SoDA is emerging as a practical tool to address these gaps by bringing transparency and accuracy to reporting. Join Samuel Leichman and David Byrd for an insightful conversation on the challenges businesses face with digital asset reporting. They’ll discuss SoDA’s foundational principles, its alignment with frameworks like FASB ASU 2023-08, and how finance professionals can prepare for these changes. Save your spot now to gain insights on your reporting strategies for 2025.

For the Cayman Islands, 2024 was a defining year. The introduction of the Virtual Asset (Amendment) Bill, 2024 marked a major step forward in refining its regulatory framework for virtual assets. This bill reflects the jurisdiction’s commitment to clarity and innovation, addressing key challenges faced by DAO's operators. Among the highlights: 1. Sharper definitions, such as “convertible virtual asset,” provide businesses with clear compliance guidelines. 2. Stronger governance standards, requiring independent directors, enhance accountability and investor confidence. These updates lay the groundwork for a thriving, trust-driven ecosystem. Stay tuned next week as we dive into more ways this bill is transforming how web3 businesses can operate in the Cayman Islands.

U.S. businesses have a steep curve to climb if they want to be exposed to digital asset investment. It's not the volatility they need to be aware of but it's the compliance and reporting for their holdings. You see, Crypto Accounting is 180 degrees different from traditional workflows. Here’s what you need to know to stay ahead: A. The GAAP Gap for Digital Assets Traditional U.S. GAAP struggles to represent blockchain-based assets accurately. From liquidity challenges to valuation mismatches, CFOs are often left with incomplete financial statements. SoDA is stepping in to align digital assets with GAAP principles. B. The FASB Fair Value Update FASB’s recent fair value reporting amendment has introduced new guidelines for digital assets—but key categories like NFTs and tokenized RWAs remain excluded. Companies must adopt solutions like SoDA to address these gaps and ensure comprehensive compliance. C. Building Bridges with SoDA Wallet/Asset Pairs and other SoDA features are creating transparency where it didn’t exist before. By assigning roles and tracking usability, SoDA simplifies reporting for both startups and established organizations. Join Samuel Leichman, David Byrd, and Richard Pasquin as they dive into these challenges and share actionable insights for navigating the future of digital asset reporting. Learn on this week's stream what these changes mean for your business and how to prepare.