CRYPTO WITHOUT A COMPASS: ETHICAL DRIFT IN SMEs’ DIGITAL ASSET USE

Abstract

The rapid diffusion of cryptocurrency among small and medium-sized enterprises (SMEs) presents both promising opportunities and profound ethical and accounting challenges. While digital assets are often hailed as tools of innovation and financial inclusion, their use by SMEs as alternative payment instruments—particularly in cross-border or digital transactions—raises complex questions of transparency, accountability, and compliance. In regulatory grey zones, this adoption risks creating environments of ethical drift, where financial practices evolve faster than existing moral and professional guidance. In Indonesia, oversight of crypto remains fragmented: fiscal regulations primarily target trading and investment activities, while the operational use of crypto in business transactions is left unaddressed. No clear accounting standards or ethical frameworks currently exist to help SMEs recognize, report, or responsibly integrate crypto as a means of exchange. This study adopts a conceptual, literature-based approach to explore how SMEs navigate ethical and behavioral uncertainty in using cryptocurrency for business transactions. Drawing on an analysis of over 40 academic and institutional sources spanning ethics, accounting, and digital transformation, this study identifies key regulatory and behavioral gaps and utilizes foundational behavioral ethics models to examine how SMEs make financial decisions under situational ambiguity and limited institutional support. As a response, the study introduces the Ethical Accounting Compass (EAC)—a conceptual framework comprising four dimensions: transparency, accountability, justice, and ethical autonomy. The EAC offers a normative guide for SMEs to act responsibly amid uncertainty and sets a foundation for future research on ethically anchored frameworks in digital finance.