Cryptocurrencies: Considerations for Treasuries

7 Cryptocurrencies: Considerations for Treasuries What’s next? There are still many questions that overhang the crypto space and regulation is likely to continue to unfold; should regulation harden, the second part of the equation becomes enforceability. Can the regulators enforce the positions they outline? Recently, Square’s Head of Finance Operations, Real Estate and Treasurer noted that “accounting hasn’t caught up to the reality of how corporate treasuries are starting to evaluate and invest in Bitcoin.” We believe this lack of clarity will continue to present challenges for organizations, especially for corporations seeking exposure to crypto. For these companies, there are three challenges to overcome. First, managing collection methods, agents, and potential conversion costs. Second, dealing with the accounting impediments associated with intangible assets. Third, hedging and other risks associated with crypto assets. In the short term, for corporations who have a fear of missing out or consider themselves leading edge we recommend learning. There is much evolution to come and crypto use cases in the corporate pace are only just emerging. Can the regulators the positions they outline? Regulators are looking closely at this area and rules are likely to be clarified, updated or changed in the coming months and years. Treasurers should be vigilant about keeping abreast of these fast moving developments. Regulation is one of the risks that is likely to have a significant impact on the outcome of cryptocurrency’s future.