International Accounting Standards Board believes Bitcoin will be gone within five years

The FASB and IASB, the two main rule-setting bodies for accounting standards worldwide, cited "Lack of usage" as the main reason for not clarifying cryptocurrency accounting treatments.

Onerous accounting standards have hindered Bitcoin and cryptocurrency adoption.

The California Society of CPAs is pushing for clearer accounting and disclosure rules for cryptocurrencies.

Accounting standard-setting bodies cautious towards cryptocurrency.

"The IASB typically takes five years to develop a new accounting standard and my prediction is cryptocurrencies will be gone before that time."

Instead of creating new standards for the GAAP, the International Financial Reporting Standards Interpretations Committee agreed to publish a non-binding statement summarizing the application of existing standards as applied to cryptocurrencies.

A staff paper recently issued by the IFRS Interpretations Committee cited 20 comment letters submitted on the subject, 16 of which recommended the Board create standards for cryptocurrency holdings.

A holding of a cryptocurrency does not give rise to a contract between the holder and another party.

Potentially dire consequences for cryptocurrency in the U.S. By delaying standard-setting and disclosures for cryptocurrency, the FASB is making it difficult for CPAs to provide consistent guidance to their clients.

These rules are critical for startups offering services based on cryptocurrency.