Leading accounting firm KPMG has partnered with Cryptio, a crypto accounting software provider, to assist crypto firms in the United States in adhering to Generally Accepted Accounting Principles (GAAP) compliance.
The primary objective of the KPMG-Cryptio strategic alliance is to establish robust controls within cryptocurrency companies, enabling them to effectively account for their crypto assets, the firm said in a recent blog post.
“We understand the importance of robust accounting and reporting practices, the risks with digital assets, and the need to have strong internal controls,” Brian Consolvo, Principal of Technology Risk at KPMG, said.
Cryptio has struck a strategic alliance with @KPMG_US. This strategic alliance aims to empower companies to meet US GAAP #accounting and reporting obligations with confidence.
With Cryptio’s cutting-edge technology and KPMG’s deep industry expertise, enterprises can now navigate… pic.twitter.com/e6UfIQLAwz
— Cryptio (@cryptio_co) July 19, 2024
Crypto Firms to be Able to Fulfill GAAP Obligations
By leveraging Cryptio’s accounting software, crypto-related enterprises and institutions can fulfill their GAAP accounting and reporting obligations in the US.
Antoine Scalia, Founder and CEO of Cryptio, claimed the collaboration with KPMG as a cornerstone for the long-term sustainability of the crypto industry.
Scalia explained that their partnership empowers enterprises and institutions to navigate the complexities of regulatory reporting requirements, audits, and accounting processes with confidence.
“Together, we are setting the standard for regulated institutions who are adopting digital assets.”
Kunal Bhasin, a partner and leader at KPMG Canada’s Digital Assets practice, noted that institutional investors are increasingly drawn to the crypto market.
He highlighted rising debt and increasing inflation as primary factors fueling institutional investor interest in crypto.
A recent survey conducted by KPMG revealed that nearly 40% of institutional investors reported having direct or indirect exposure to crypto assets in 2023, marking an increase from 31% in KPMG’s 2021 study.
The survey included 65 respondents, with 31 identifying as institutional investors managing over $500 million in assets, and the remaining 34 representing financial services organizations.
It found that one-third of institutional investors have allocated 10% or more of their portfolios to crypto assets, up from a fifth two years ago.
The maturing market and improved custody infrastructure are key drivers behind the increased client demand for crypto asset services.
Crypto Firms Warm Up for MiCA in EU
MiCA, the Markets in Crypto Assets framework, is a comprehensive regulatory framework established by the European Union to create consistency in crypto regulation among its member states.
It was approved by the European Parliament in April 2023, and its rules are being implemented in stages.
As part of the MiCA framework, stablecoins issued within the region are subject to increased regulatory requirements.
Starting from June 30, stablecoin issuers were required to comply with specific MiCA requirements.
Circle, the issuer of USDC, became the first global stablecoin firm to achieve compliance with MiCA on July 1.
Binance has also adjusted its approach, limiting access to unauthorized stablecoins in Europe, though not delisting them entirely.
More recently, OKX revealed that it has selected Malta as its hub for MiCA compliance within the European Union.
In a Thursday press release, the firm said it chose Malta due to its reputation for high regulatory standards and its progressive approach to blockchain technology and cryptocurrencies.
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