Accounting Giant PwC Now Audits Crypto Companies & Eight Tokens Including Bitcoin & Ethereum
PricewaterhouseCooper LLP, one of the four accounting giants has now added cryptocurrency auditing to its services as it expands into the asset class, reported Bloomberg.
Following the regulatory probes and missing tokens due to theft and hacks, there has been a call for greater industry transparency. Despite this, professionally auditing digital assets has proven challenging.
Accountants have struggled to verify the ownership of cryptocurrencies. Many firms also lack the risk management and process controls in the space.
“PwC spent the past year designing tools that could match private keys and public addresses,”
said Ralph Weinberger, head of PwC’s Global Assurance Methodology, Learning, and Education Organization.
Though the tools of the auditor can’t access the unique security codes that secure each of these keys, they do allow the firm to verify that an entity is the sole owner of particular cryptocurrency holdings, explained Wienberger.
This difficulty in verifying cryptocurrencies is one of the reasons that has institutional investors restrained from going all in. Though the crypto market is riddled with manipulation just like any other market, it is still nascent and dogged by a few other elements like fraud and theft.
Now, an audit sign off from the accounting giant, could help alleviate some of those concerns and make them more confident about the market which is getting a lot of attention from the institutions.
While auditing the accounts of Hong Kong-listed BC technology Group Ltd., a blockchain investment firm which also has an over the counter crypto trader OSL unit, the firm used the tools.
For now, PwC can audit eight tokens including Bitcoin (BTC) and Ethereum (ETH). Given the fact that each of the coins has different blockchains and cryptography involved, they require their own audit tools. This is one reason why Weinberger said this took so long to design the technology.