Accounting of Cryptocurrencies in Slovenia

Abstract

The cryptocurrency business in Slovenia is challenging due to the lack of specific legislation and guidelines. According to the Slovenian Accounting Standards (SRS 2024), cryptocurrencies are not considered cash equivalents, but rather inventory if intended for trading, or intangible assets for long-term investments. Based on SRS 3, they can be recorded at cost, which ensures stability, or at fair value through profit and loss, which better reflects the market conditions but causes volatility. Despite the improvements in SRS 2024, the standards do not cover all aspects, such as cryptocurrency exchanges and DeFi operations, leading to discrepancies in practice. This increases the complexity of the cryptocurrency accounting and requires adjustments and further education for accountants. Monitoring international practices and adapting them to the Slovenian conditions could improve compliance and transparency. For the future, it is crucial to develop comprehensive guidelines and tax regulations that would address all aspects of cryptocurrency business operations. Clearer rules would reduce ambiguities, enhance the reliability of the accounting practices, and increase trust in cryptocurrency business operations. Despite the progress in the accounting treatment of cryptocurrencies, their dynamic nature still presents challenges in the Slovenian accounting.