Big Four Accounting Firms Deloitte, EY, PwC and KPMG’s Crypto Auditor Teams are All Growing Fast
Don’t let the recent bearish crypto market dishearten you, it is slowly creeping its way to the mainstream. Being nascent and loosely regulated sector doesn’t seem to slow down their adaptability.
Larger organization require more financial services and faster transaction processes. As crypto companies get bigger, they need financial services like tax consultancy, auditing and more. To cater to these needs, traditional accounting and consulting companies are on a ‘crypto specialist’ hiring spree to stay ahead of the curve.
Financial Times has recently reported that the ‘big four’ accounting firms, namely, Ernst & Young (E&Y), Klynveld Peat Marwick Goerdeler (KPMG), Deloitte and PricewaterhouseCoopers (PwC), have hired as much as 400 blockchain and crypto experts to serve hundreds of crypto clients.
Ralph Weinberger, the head of E&Y’s global network assurance methodology group told Financial Times:
“We are devoting significant resources to how we might provide audit services in not just cryptocurrency, but blockchain.”
Notably, the regulatory environment across the globe is clearly not enough to support the migration of these multi-billion dollar companies. As a matter of fact, most regions around the world lack any kind of specialized regulations at all, creating a highly uncertain atmosphere for crypto and blockchain companies. Even countries like the US, where some regulations have taken some form, the ambiguity remains.
It is now the responsibility of companies like PwC to help crypto startups to help them be tax compliant. It’s not only crypto mining companies and exchanges that will benefit from this, rather any companies that open themselves to blockchain technology. It is evident that just accepting Bitcoins as a form of payment can cause massive confusion for companies.
In fact, PwC is adamant on being the trailblazers for the crypto route as evident from the company dedicated submenu on their website which says:
“PwC sees enormous potential for blockchain in financial services. We ’ve developed the strategy and implementation capabilities necessary to help financial institutions, technology companies, and startups take advantage of this transformative technology. Our global team of experienced business, technology and regulatory leaders can help you identify how blockchain can benefit your organization and how to rapidly move these initiatives forward.”
However, this journey has to be tread very carefully. One wrong move by these accounting giants and the entire reputation of the crypto ecosystem will be at stake. Jatin Patel, the director in the investment management and funds audit practice at KPMG, which audits several dozens of crypto firms in the Cayman Islands said that the hardest path in working with cryptos is to verify ownership. Carrying out due diligence of crypto companies is also harder than that of traditional entities.