Sure, it’s cliché to say crypto is here to stay, but as much as saying it should be avoided, the facts and statistics make it the obvious phrase in this case: the global crypto market cap reached an ATH of $3.7 trillion in mid-December 2024, and today it hovers over a robust $3.28 trillion, which is almost 3x what it was two years ago.
Global crypto users are projected to surpass 950 million this year, according to a recent report by TradingView on digital asset adoption. This stat, in particular, is remarkable, considering previous estimations stood at just under 600 million users worldwide.
“In 2025, this shift is speeding up. Governments, financial firms, and corporations see crypto as a serious asset rather than just a high-risk gamble,” the Blockchain Council said recently.
Coinbase and global consultancy firm EY-Parthenon released a survey of more than 350 institutional investors. “An overwhelming majority (83%) of them plan to increase their crypto allocations in 2025, and 86% are exposed to crypto or plan to be this year,” Coinbase stated.
Crypto’s dramatic evolution
“Cryptocurrency has evolved dramatically over the past several years, and certainly more so since its origins nearly 15 years ago,” O’Connor told Blockleaders in an exclusive interview. “Crypto natives still focus almost obsessively on protocol upgrades, although they begin to include topics such as regulatory frameworks and widening consumer access.”
However, O’Connor warns that a critical layer remains overlooked—the accounting infrastructure that enables crypto to scale within enterprises, institutions, and governments.
Deloitte agrees with her. They released a report highlighting that 72% of U.S. traditional firms holding crypto lack adequate systems for crypto-specific accounting and audit processes.
A gap threatening crypto adoption
O’Connor has been in the crypto space since 2014, when she joined Uphold, where she rapidly rose through the ranks, becoming their VP of Marketing and Community within four years.
She’s now been with Taxbit for nearly five years. Michelle is their VP of Global Market Expansion and Innovation and, in parallel, chairs the Association for Women in Cryptocurrency.
“I’ve worked with global banks, publicly listed companies, and government agencies, and it is clear to Taxbit and me that the firms that succeed in integrating digital assets aren’t the loudest about their efforts—they’re the most prepared. They invest in tooling, internal education, and partners who bridge the gap between innovation and compliance.”
She added: “That gap threatens to undermine adoption, as enterprises face heightened risks of misstatements, tax penalties, and audit failures without proper infrastructure-
Proper crypto accounting structures
For digital assets to integrate into the real economy, they must navigate the same back-office gauntlet as traditional asset classes—tax treatment, audit readiness, treasury compliance, and reporting accuracy, Michelle explained.
“This may not be the most glamorous topic, but it is foundational to mainstream adoption,” O’Connor.
But it’s not just institutional investors entering crypto who need to understand the need for proper accounting structures fully; crypto natives, too, need to start implementing these measures “yesterday”, she warned.
According to a 2024 Deloitte survey, 68% of financial institutions cited “regulatory compliance and reporting” as the primary barrier to scaling digital asset operations.
“Without robust accounting systems, even the most promising crypto projects risk stalling under the weight of regulatory scrutiny or operational inefficiencies,” Michelle highlighted.
Although cryptocurrency may feel young, and in many ways it is, enterprise standards are not, Michelle said.
Uncle Sam is not letting it slide
“Tax treatment is a prime example. In the U.S., Uncle Sam has intensified scrutiny, with Operation Hidden Treasure targeting unreported crypto income since 2021,” the Taxbit VP said. “The IRS has estimated that crypto transactions have contributed significantly to the $688 billion tax gap recorded in 2022.”
That’s a lot of money, and the IRS is one of the most intense enforcement agencies worldwide, so they are not going to allow crypto activities to go unlevied. New regulations, effective for transactions in 2025, require brokers to report crypto activities or face severe penalties. The agency aims to raise $28 billion in crypto tax revenue over a decade.
“For enterprises, this means meticulous tracking of cost basis, fair market value, and transaction histories across wallets and exchanges—tasks that demand efficient accounting systems,” Michelle said.
Beyond price charts and roadmaps
Michelle estimates that about 62% of crypto investors using manual tracking methods reported errors in their tax filings, compared to 14% who used automated crypto tax platforms.
She said that as the regulatory landscape matures, crypto-native companies must meet traditional finance where it is, not where they hope it will be.
“This means prioritising the infrastructure layer: accounting automation, audit traceability, and compliance by design. These systems are not a nice-to-have; they are the foundation of institutional adoption.”
Michelle concluded her latest Op-Ed on Cryptonews.com, “The Hidden Layer of Crypto Adoption: Accounting Infrastructure”, saying, “For those watching the next chapter of crypto unfold, don’t just look at the price charts or protocol roadmaps. Review the spreadsheets, ledger integrations, and reporting dashboards. That’s where the future is being quietly — and finally — built.”
