The introduction of bitcoin back in 2008 was a solution to the banks, which had a huge impact on the global financial system that crippled the economy. We are still seeing the effects of those events today. Bitcoin brought a compact revolutionary technology to the global economy that is still being explored by banks and other financial institutions. The rise of Bitcoin, Ethereum, Ripple, and Dash among others have generated a wave of innovation. This technology also referred to as Distributed Ledger Technology has proven to be useful to giant industries across the globe and are now ready to use its power to improve internal systems. There are law firms and tech companies like Google and Microsoft that look to harness its unique capabilities.
The "Big Four" which is the worlds most important accounting firms: PwC, EY, Deloitte and KPMG firms have made it clear during 2018 that they are currently researching the developments of the technology for cryptocurrencies and blockchain applications. We will go through some of the accounting financial firms in the list below, that are focused on the implementation of cryptocurrencies.
1. Pricewaterhousecooper (PwC)
This is a financial firm that is based in London with its headquarters and is a multinational professional service network. The firm is well-known throughout the financial accounting industry and is the second largest professional accounting service behind Deloitte. The firm has won many awards for consecutive years as one of the most prestigious accounting firms know in the economy.
The firm has recently made investments in blockchain projects like VeChain, with more than 1,000 staff members announced for its new Blockchain/Crypto program called "The Digital Accelerators Program." The company plans to use the VeChain blockchain for the creation of a trusted distributed business ecosystem.
The firm is a member of the "Big Four" and is proving to be one of the best audits for tax, consultancy, enterprising risk along with financial advisory services for various professional financial companies worldwide. Deloitte is the 4th largest privately owned company in the United States.
The company is heavily focused on the technical developments and implementation of the Blockchain technology and its usage in the financial system.
Deloitte was one of the first to be involved in the creation of Bitcoin ATMs in Toronto and Canada while demonstrating that exchanging crypto to fiat is easy and without any strict KYC and AML procedures needed. The company is now creating Blockchain integration applications and is even created a division called the Deloitte Blockchain Lab.
3. Ernst & Young (EY)
One of the biggest of the Big Four is EY, the firm has been hard at work for the development of tools for helping companies identify any inherent risks that the blockchain may present. The firm also gives guidelines for using the crypto-related models like the implementation of ICOs.
The firm made an announcement back in April 2018 that made headlines about its EY Blockchain Analyzer. This is an application that was designed to facilitate the EY audits teams to gather any organizational transactions data from multiple Blockchain ledgers.
The application allows for the audit of EY teams to extract data from various blockchains in order to assist any companies or individuals in auditing of any financial activities.
The financial firm has joined the ranks of the Big Four, through the announcement of its intended drive, while expanding its use of the Blockchain technology. The firm makes taxes, audits, advisories and industry records. Last year back in the summer of 2018 the firm worked together with a variety of partners to create a comprehensive Blockchain strategy and is now pivoting its blockchain businesses to risk assessments and audits.
The implementation of the blockchain with KPMG is similar to EY in that both companies have allocated most of its resources to analyzing the risks that can come with using the blockchain, if not completely understood.
The IBA company markets its team as one of the leading experts in the crypto accounting service industry. It focuses on the development of new-age comprehensive solutions for all taxes that are related to cryptocurrencies and blockchain. The firm has a wide range of blockchain account services that are meant to help any business get an edge on the ever-changing market of cryptocurrencies.
The company offers services like ICO account consultation, personal cryptocurrency taxations, consultancy and the connection to CPAs through cryptocurrencies. This includes other crypto accounting agencies in coordination with the administration of funds. The IBA's palette of services is catering to almost all types of businesses or crypto administrators such as crypto miners, high-frequency traders, early adopters, assets managers and Blockchain leaders.
6. Crypto CPAs
This financial company is managed by crypto enthusiasts Andrew Perlin and Charlie Minard. The firm is focused on helping clients deal with all implications of crypto tax payments associated with blockchain and crypto businesses.
One of the main goals of the premiere account firm is to design and cater to the needs of U.S taxpayers trying to invest in cryptocurrencies and wants to launch an ICO project. The company's two main services are U.S tax preparation and ICO tax and accounting services.
The first service helps companies and individuals to strategize the tax returns to the IRS. While the other service provides help with ICO projects to navigate complicated tax and accounting reports, that are required to ensure full compliance with the FinCEN, SEC and the IRS.
The Mycryptotax is located in the UK and is proficient in the implementation of accounting firms that want to offer an impressive collection of crypto tax services that will ensure the business stays on top of any compliance, reports and planning issues.
The firm is ready to help companies with the identification of its tax return requirements, along with tax-reduction strategies. Through the optimization of tax position and the calculation of tax liabilities. The firm is a fully accredited and associate members of the Chartered Global Management accounts, Association of UK accountants, Institute of Certified Public, Accountants, and British Computer Society.
Cryptocurrencies continue to grow throughout the financial system and more accounting firms are expected to launch crypto and Blockchain related auditing programs, in the space.