Cryptocurrency Regulation and Financial Disclosure: Cross-Jurisdictional Evidence on Corporate Reporting Practices

Abstract

This study explores how cryptocurrency regulation influences corporate financial reporting across multiple jurisdictions from 2016 to 2022, examining how differing laws alter managerial incentives and assurance processes. Disclosure behaviour in strictly regulated and moderately regulated settings is compared with evidence from 20 firms operating in 10 countries. Ordinary least squares regression and thematic coding provide convergent evidence. OLS regression controls for jurisdictional grouping and sectoral variation are applied. The analysis finds that tougher regimes are associated with greater transparency, more consistent cryptocurrency valuation, and richer risk disclosure. These benefits are most pronounced where proactive regulators exercise strong public financial oversight. Conversely, firms operating under vague or lax regimes exhibit fragmented disclosure and limited comparability. The inquiry also highlights systemic shortcomings, including inconsistent accounting classification of cryptocurrency, the absence of a single impairment rule, and a lack of unified reporting norms. Such deficiencies hinder investors, regulators, and auditors in assessing financial positions and risk exposure. Stakeholder theory highlights accountability pressures, legitimacy theory explains symbolic responses, and systems theory situates disclosure within broader institutional ecosystems, showing how regulatory contexts shape organisational strategy and reporting conventions. The research concludes by urging international harmonisation of accounting standards and sector-specific disclosure guidance to secure transparency and comparability within the expanding digital asset economy. This implies that policymakers should prioritize regulatory clarity to improve global disclosure comparability.

Keywords: Cryptocurrency Regulation, Financial Reporting, Disclosure Quality, FinTech