Crypto Accounting, Auditing and Tax Services Cyprus
Cross-Border Expertise in Crypto Accounting and Reporting
At Nikita & Partners, we provide specialist support to businesses dealing with cryptocurrencies, tokens, NFTs and blockchain-based operations. Our experience spans Cyprus, the BVI and international structures, enabling us to deliver accurate, compliant and practical financial reporting for one of the world’s fastest-moving industries.
We specialise in crypto accounting, crypto auditing and digital-asset tax services for companies based in Cyprus and internationally.
Introduction
The digital-asset industry has evolved into a sophisticated global market, and companies operating in this space require advisers who understand both the technology and the financial reporting implications behind it.
Our Experience
We have significant hands-on experience working with crypto-focused entities ranging from holding companies and market-making firms to digital-asset developers and Web3.
Our team has audited companies holding assets both on-chain and off-chain, including, among others, entities with NFT portfolios, algorithmic trading operations, and SAFT or SAFE agreements.
We have served as auditors for several BVI companies and assisted them in obtaining their VASP licences, giving us clear insight into what regulators expect in terms of internal controls, documentation, valuation methods and IFRS compliance. This background allows us to deliver reporting that is both technically correct and regulator-ready.
Accounting for Crypto Assets
Correct classification under IFRS is essential. Crypto assets may fall under IAS 38, IAS 2 or IFRS 9 depending on their nature and purpose. We guide businesses through this assessment in line with IFRS requirements and ICPAC expectations, while remaining fully aligned with developments in the global accounting landscape. Our support covers the full accounting cycle from classification, measurement and fair value considerations to impairment testing, wallet reconciliation, exchange reporting and NFT-specific treatment. Our approach ensures that financial records reflect economic substance and remain fully compliant.
Audit of Digital Asset Companies
Auditing crypto assets requires technical understanding and a methodology tailored to blockchain operations. Our work aligns with international standards and incorporates blockchain-specific procedures such as:
- Verification of wallet ownership and on-chain balances
- Reconciliation of exchange wallets and custodial accounts
- Assessment of custody arrangements and private-key controls
- Fair-value measurement and impairment assessment
- Appropriate disclosures for digital-asset activities
We are familiar with the challenges of auditing high-volume trading flows, market-making positions and token-based economic models. Our team ensures that financial statements stand up to scrutiny and accurately reflect the underlying activity.
Cyprus Taxation of Digital Assets
The Cyprus tax environment continues to evolve, and we help clients understand and apply the rules correctly.
This includes the treatment of crypto gains, income arising from digital-asset activities, VAT implications, and the use of Notional Interest Deduction (NID) in equity-funded crypto structures.
Cyprus is also proposing the introduction of an 8% flat tax on gains from crypto-asset disposals, which will represent the first dedicated crypto tax framework in the jurisdiction. We guide businesses through these developments, so they remain compliant and optimally structured.
Why Work with Us
Crypto is not a traditional asset class, and the accuracy of your financial reporting depends heavily on the knowledge of your accountant and auditor.
We stay fully aligned with IFRS developments and the evolving MiCA framework, helping our clients avoid misclassification, weak documentation and reporting surprises.
Our firm combines technical accounting expertise with sector-specific experience, offering a service that is both diligent and practical. Whether you hold crypto as an investment, operate a trading desk, build blockchain technology, or manage digital-asset portfolios, we help ensure that your reporting is precise, compliant and credible.
Contact us to discuss your crypto accounting, audit or tax needs.
Frequently Asked Questions on Crypto Accounting, Audit and Tax
When selecting a provider, it is essential to choose a firm with proven experience in crypto accounting, digital-asset audits and IFRS classification, as crypto requires specialised knowledge of wallets, custody arrangements, token structures and high-volume transactions.
You should also ensure the firm is properly regulated: all audit firms in Cyprus must be licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC) and appear in the ICPAC public register. Audit quality is monitored by ICPAC in cooperation with ACCA.
We are proud to have recently passed an ICPAC monitoring review conducted by ACCA with excellent results, reflecting our commitment to high-quality audits, strong ethics and compliance with international standards.
Crypto holdings must be classified correctly under IAS 38, IAS 2 or IFRS 9, depending on their nature. Financial statements need proper valuation, impairment assessment, reconciliation of wallets and exchange accounts, and clear disclosures. Working with a crypto-experienced auditor ensures the statements remain compliant and regulator-ready.
A crypto business must keep complete and verifiable records, including wallet activity, exchange statements, transactional logs and agreements such as SAFTs or SAFEs. Auditors also require clarity over which wallets and assets the company controls. Strong record-keeping ensures accurate reporting and avoids delays during the audit.
Cyprus has proposed an 8% tax on gains from crypto-asset disposals, which will introduce the first dedicated crypto tax framework once enacted. Until then, gains are taxed under existing rules depending on whether the activity is trading or investment. A specialist adviser helps ensure the correct treatment and optimal structure.
Begin the Process
Whether your company is already active in the crypto market or navigating its first steps, our team provides the specialised accounting, audit and tax support required to stay compliant and well-structured. From IFRS classification and digital-asset audits to ongoing reporting and tax planning, we offer clear guidance and professional oversight whenever you need it. Get in touch to move forward with confidence.