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Cryptocurrencies in the Netherlands

10 June 2019 / Ceriel Coppus
Issue: 4699 / Categories: Comment & Analysis
Virtual money

Key points

  • Bitcoin was the first decentralised cryptocurrency.
  • How should cryptocurrencies be classified in annual accounts of businesses that use them?
  • The Netherlands classified them as intangible fixed assets inventory or other investment.
  • The intent or object of the user governs which classification to use.

A cryptocurrency is a digital or virtual money that uses encryption techniques to secure and verify its transactions to control the generation (mining) of additional currency units and to verify the transfer of funds and thus operate independently from a centralised bank. Cryptography itself describes the practice and study of techniques for secure communication in the presence of third parties. In contrast to traditional forms of fiat money that are controlled using centralised banking systems – national currencies whose value is not tied to a commodity such as gold – cryptocurrencies use decentralised control.


The decentralised control of a cryptocurrency works through a blockchain. This lists records or...

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