Coinspeaker
KPMG Joins Forces with Cryptio to Bring Financial Reporting Standards to US Crypto Market
Popular United States accounting and auditing firm KPMG is set to enter a strategic alliance with the leading crypto accounting software platform Cryptio. The focus of this latest development is to revolutionize reporting standards in the crypto ecosystem. The audit, tax, and advisory firm’s expertise will focus on harnessing to establish controls amongst digital asset service providers to better account for crypto assets
Here Comes New Financial Reporting Standards
At the end of the day, companies that participate will come off as Generally Accepted Accounting Principles (GAAP)-compliant. To meet financial reporting standards, KPMG said that every company must obtain accurate and comprehensive on-chain data for financial reporting purposes. However, there have been some challenges in meeting up with these standards. These shortcomings prompted the alliance between KPMG and Cryptio.
Together, both entities with their expertise and tools, plan to help crypto firms navigate the complex intricacies involved. Cryptio boasts of state-of-the-art technology which enables companies to maintain complete and auditable data. On the other hand, KPMG offers deep industry knowledge to help businesses navigate financial landscapes, enhance internal controls, and meet financial reporting standards.
Both KPMG and Cryptio are bringing this knowledge and technology to the crypto market and financial institutions. Brian Consolvo, Principal Technology Risk, KPMG, was clear about the significance of this partnership. He described it as a significant milestone for financial institutions and enterprises embracing the opportunities and challenges of the digital asset space.
“We understand the importance of robust accounting and reporting practices, the risks with digital assets, and the need to have strong internal controls. Through this collaboration, we are able to bring a comprehensive solution to our clients that enables them to streamline their digital asset accounting practices and meet their regulatory obligations,” Consolvo added.
Crypto Financial Reporting Takes a New Form
It is worth noting that the growth and expansion of the crypto ecosystem have somehow necessitated such moves. Many jurisdictions have begun to enforce financial reporting standards to ensure compliance and alignment in their varying financial sectors.
In the United States, the Securities and Exchange Commission (SEC) have remained in the helm of affairs, dictating to crypto firms how to conduct themselves. A week ago, the Commission decided that banks and brokerage firms no longer have to include their customers’ cryptocurrency holdings on their financial reports. This is on the premise that the financial institutions ensure they manage the risks associated with the crypto asset.
Similarly, Hong Kong welcomed innovative software FinTax in May to simplify tax reporting amidst a surge in crypto adoption. This coincided with the period that spot Bitcoin and Ethereum ETFs were approved in the region. The collaboration between KPMG and Cryptio is also another means of transforming financial reporting for the crypto sector amongst these other solutions.
To Antoine Scalia, Founder and CEO of Cryptio, the alliance with KPMG is a foundation for the long-term sustainability of the crypto industry.
KPMG Joins Forces with Cryptio to Bring Financial Reporting Standards to US Crypto Market
