Should cryptocurrencies be reported in FBARs?

As a finance professional, I often find myself pondering the intricacies of reporting requirements for various financial assets. With the rapid rise of cryptocurrencies in recent years, the question of whether they should be included in Foreign Bank Account Reports (FBARs) has become increasingly pertinent. On one hand, cryptocurrencies offer unprecedented levels of anonymity and decentralization, potentially making them difficult to track and regulate. On the other hand, their increasing popularity and value have raised concerns about tax evasion and illicit financial activity. So, the question arises: should cryptocurrencies be reported in FBARs? What are the legal implications of not reporting them? And how can we ensure compliance while still protecting the privacy and innovative nature of this emerging asset class?