KPMG to help US crypto firms uphold reporting standards

Arijit Sarkar31 minutes agoKPMG to help US crypto firms uphold reporting standardsKPMG formed a strategic alliance with Cryptio to help crypto firms in the United States adhere to GAAP compliance, enhancing accounting and reporting practices.153 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBig Four accounting firm KPMG established a strategic alliance with Cryptio, a crypto accounting software, to help crypto firms in the United States adhere to Generally Accepted Accounting Principles (GAAP) compliance.

According to the announcement, the KPMG-Cryptio strategic alliance is aimed at establishing controls within cryptocurrency firms to better account for their crypto assets.Crypto reporting compliance with KPMG’s support

Brian Consolvo, principal of technology risk at KPMG, underscored the importance of streamlining digital asset accounting practices and meeting regulatory obligations in the US. He added:“We (KPMG) 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, crypto-related enterprises and institutions can meet their GAAP accounting and reporting obligations in the US using Cryptio’s accounting software. Antoine Scalia, Founder and CEO of Cryptio, sees their alliance with KPMG as a foundation for the long-term sustainability of the crypto industry. Explaining the partnership in detail, he said:

“Our alliance with KPMG 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.”

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According to Kunal Bhasin, a partner and leader at KPMG Canada’s Digital Assets practice, one of the primary reasons institutional investors are increasingly attracted to crypto is rising debt and increasing inflation.

A recent KPMG survey revealed that nearly 40% of institutional investors reported having direct or indirect exposure to crypto assets in 2023 — up from 31% in KPMG’s 2021 study.Institutional investors’ exposure to cryptocurrencies. Source: KPMG

Out of the 65 respondents who participated in the KPMG study, 31 identified as institutional investors, most managing more than $500 million in assets, while the remaining 34 were financial services organizations.

The survey further found that one-third of the institutional investors have allocated 10% or more of their portfolios to crypto assets — up from a fifth two years ago. Maturing market and improved custody infrastructure are key drivers behind increased client demand for crypto asset services.

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