Ensuring compliance with applicable accounting standards and selecting the appropriate principal market for cryptocurrency transactions are vital elements of the accounting process. This help center article aims to provide an overview of how to utilize Cryptio’s principal markets selection function for different accounting frameworks.

What is a principal market?

According to PWC, a principal market is the market with the greatest volume and level of activity for the relevant crypto asset that the entity holding the crypto asset can access. Fair value measurement is a crucial aspect of cryptocurrency accounting, as it reflects the current market value of digital assets. The principal market should be the primary consideration for determining the fair value of a digital asset.

How does principal market selection work in Cryptio?

In Cryptio, users can choose among our default price providers (hourly Coingecko), or Binance, Binance US, or Coinbase as price sources for their workspace for specific assets, on your entire history, or on a specific period.

Users can update the pricing provider (new default provider (hourly Coingecko), Binance, Binance US and Coinbase prices come from Kaiko.) or can simply keep the legacy pricing (Coingecko daily). By default, existing workspaces are configured with the legacy, the same thing for newly created workspaces as long as the new default provider is not live.

If your preferred pricing provider is not listed, do reach out to the Support team, as the selection is built out to be adaptable and scalable to customers’ needs.

⚠️ Today’s rates won’t be considered anymore. The latest rates that will be considered are the ones from yesterday at midnight.

• Imports: if a wallet is imported today and some transactions occurred today, they won’t be imported until the next wallet update the day before at the earliest. A message will be displayed in the product to explain that.
• Wallet updates: if a user updates their wallet today, they won’t get today’s transactions. The latest transactions coming in are the ones from yesterday up to midnight. They will be able to get today’s transactions starting from tomorrow.
• Reports: Today’s date and data won’t be pickable (except for Today’s balances report, see details below).
• Provisional prices: the Dashboard and Today’s balances report are relevant only to current rates. To keep them up to date, we’ll use provisional prices to fill them. Coingecko and Kaiko prices will be used there.
  • Coingecko: we copy yesterday’s prices on today’s prices
  • Kaiko: we update all the prices we have every 6h

Important considerations:

💡 Terminology:

• Legacy providers: Coingecko EOD and Kaiko
  • By default, in every existing workspace, this option is the one selected
  • ⚠️ Once the new rate service is live, newly created workspaces will have the Default providers option by default
• “Default Providers: supported with Kaiko 5 mins volume-weighted average price or Coingecko hourly price

💡 Transition logics:

• All existing workspaces - If no action is taken, the pricing provider will be set with Legacy providers.
• All new workspaces - Will be supported by the Default provider.
• If a specific provider is chosen, new wallets and existing wallets are by default priced by this provider according to the specified period
• If one or several providers have been chosen, when an asset is not covered by a preferred provider of a given specified period, the asset is priced by the Default provider. 

🚨 Note that if a locked period is activated on your workspace the full retroactivity will be applied until the end date of your locked period. Therefore, please carefully consider the period of pricing provider selection for your new data. 💡Tip: Download prior (locked) period reports in case there is any major impact after changing price provider.

Set up your principal market provider in 6 steps:

1. Go to the sidebar navigation bar and select Manage Workspaces by clicking the downward arrow next to your workspace name
2. Click on the workspace you want to change the principal market for
3. In the pop-up drawer, scroll to Select Principal Market settings
4. From the providers, select your preferred provider: Binance, Binance US, Coinbase, or Legacy
5. Choose if you want to perform this setting on the full retroactivity or until a certain start & end date
6. Click Apply

Pick a pricing provider for a specific asset in 7 steps:

1. Go to the sidebar navigation bar and select Manage Workspaces by clicking the downward arrow next to your workspace name
2. Click on the workspace you want to change the principal market for
3. In the pop-up drawer, scroll to Pick a provider for a specific asset settings
4. Select the Asset
5. From the providers, select your preferred provider: Binance, Binance US, Coinbase, or Legacy
6. Choose if you want to perform this setting on the full retroactivity or until a certain start & end date
7. Click Apply

How to generate the principal market report for audit purposes?

Check out our Assets Principal Markets Audit Report article for detailed instructions.

If you have further questions, our Customer Support team is always here to help.