The article examines key issues related to the accounting and taxation of digital assets, specifically cryptocurrencies, in light of the ongoing global digitalization of the economy. It highlights that despite the increasing popularity of cryptocurrencies worldwide, the classification and accounting practices for these assets in Ukraine are still inadequately regulated.

The study aims to analyze both the theoretical and practical aspects of accounting and taxation concerning digital assets.

It concludes that the accounting treatment of digital assets depends on how an enterprise uses them. These assets can be classified as intangible assets, financial assets, or inventories. The article reviews international accounting and taxation practices for cryptocurrencies, focusing on the United States and the European Union. It includes examples of accounting entries to record transactions involving cryptocurrencies. Additionally, it discusses the unique taxation aspects of digital asset transactions in Ukraine and abroad. The research indicates that, in international practice, digital assets are primarily categorized as either intangible assets or inventories. In Ukraine, legislation surrounding the accounting of crypto assets is still developing; however, there are general approaches that align with International Accounting Standards (IAS) and National accounting regulations. The study reveals that the fiscal policy regarding cryptocurrency taxation in other countries varies based on how their laws define virtual money. Most countries require individuals to pay taxes on capital gains from cryptocurrencies, meaning taxes are levied on profits earned from selling or acquiring these assets.

The scientific innovation of this article lies in integrating theoretical and practical perspectives on accounting and taxation for digital assets, particularly considering the inadequate legislative framework in Ukraine. The practical significance of this study is to offer recommendations for businesses and individuals regarding the accounting and taxation of cryptocurrencies and to support the alignment of Ukrainian legislation with international standards.