KPMG, a leading accounting firm, has formed a strategic alliance with Cryptio, a crypto accounting software company, to assist US crypto firms in complying with Generally Accepted Accounting Principles (GAAP).
The partnership aims to implement controls within cryptocurrency firms for better accounting of their digital assets.
Brian Consolvo, KPMG’s principal of technology risk, emphasized the significance of refining digital asset accounting practices and adhering to US regulatory requirements.
He stated, “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 enterprises and institutions can fulfill their GAAP accounting and reporting obligations using Cryptio’s software.
Antoine Scalia, Founder and CEO of Cryptio, views the alliance with KPMG as essential for the long-term sustainability of the crypto industry.
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He elaborated, “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.”
The rising interest of institutional investors in crypto is driven by factors such as increasing debt and inflation, according to Kunal Bhasin, a partner at KPMG Canada’s Digital Assets practice.
A recent KPMG survey found that nearly 40% of institutional investors had direct or indirect exposure to crypto assets in 2023, up from 31% in 2021.
The survey included 65 respondents, with 31 identified as institutional investors managing over $500 million in assets, and the remaining 34 from financial services organizations.
It also revealed that one-third of these institutional investors have allocated 10% or more of their portfolios to crypto assets, an increase from one-fifth two years ago.
The maturing market and improved custody infrastructure are key factors driving the increased client demand for crypto asset services.
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