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Although few fully understand the evolving science of blockchain technology, many agree that such technology promises countless crypto innovative applications. However, institutions using blockchain and cryptoassets face issues. Since more institutions are beginning to explore various private, public, and hybrid blockchains and their related cryptoassets, an increased need exists to understand and anticipate implementation problems. Such problems include contractual issues, privacy concerns, tax implications, jurisdictional issues, financial fraud, and data theft. Others involve intellectual property rights, money laundering, accounting and financial reporting, fork management and governance, and compliance and regulatory obligations. This chapter reviews and analyzes the various problems facing institutions in using blockchain and cryptoassets as financial instruments and mediums of exchange. It focuses on these aspects concerning custody, provenance, and reporting. This chapter also discusses the compliance, disclosure, and regulatory reporting of cryptoassets.

Bitcoin’s introduction as the first cryptoasset in 2009 ushered in a new era, representing a seismic shift in the financial markets. Since then, this evolving asset class has generated much interest, excitement, and growth. This chapter begins by providing a brief background of cryptoassets. It then discusses their main types (cryptocurrencies, security tokens, and utility tokens), users (individual investors, major financial institutions, endowments, and hedge funds), and benefits and drawbacks. Next, it sets forth the book’s purpose, distinguishing features, intended audience, and structure. The chapter provides a synopsis of each of the remaining 21 chapters. Although no single book can encompass all changes and iterations of these technologies as they emerge in the marketplace, this book brings together a broad collection of industry expertise and academic analysis to create a book helpful to researchers, academics, and practitioners.