Accounting and finance strategy designed for Web3

It depends on where the issuing entity sits and how the token is classified: proceeds can be taxable income on day one, deferred revenue, or capital depending on structure and jurisdiction. The tax outcome is largely locked in by decisions made before the TGE, which is why structuring should happen months before launch, not after.

Under US GAAP, crypto assets in scope of ASU 2023-08 are now carried at fair value with changes through earnings. Under IFRS, holdings are typically intangible assets (or inventory for traders), which creates impairment complexity. We apply the right framework for your reporting jurisdiction and translate wallet activity into statements auditors accept.

If you have a handful of simple custodial transactions, a general ledger alone can cope. Once you run hot wallets, DeFi positions, staking, or thousands of on-chain transactions, you need a dedicated crypto subledger feeding Xero or QuickBooks: it tracks cost basis, timestamps, and valuations per transaction, which no general ledger does natively.

Complete wallet-level transaction histories, timestamped valuations from a consistent price source, evidence of wallet ownership and custody controls, treasury policies, and reconciliation between on-chain activity and the general ledger. The most common failures are mixed personal and corporate wallets and inconsistent pricing sources: both are avoidable with the right setup.

With a written policy: how much sits in stablecoins versus the native token, custody and signer arrangements, when to convert to fiat for runway, and who approves movements. Treasury discipline is a diligence item for token investors and exchanges, and it is a core part of our Web3 CFO work.

Common structures pair a token-issuing foundation or company in a jurisdiction like BVI, Cayman, or Panama with an operating company where the team actually works. The right answer depends on your token model, investor base, and substance requirements. We structure and operate these setups across eight jurisdictions, including the UAE and offshore centers.