Ernst & Young Acquires Crypto Technology
Established financial companies have been increasingly exploring possibilities in the fintech sector. Ernst & Young, one of the major global accounting firms, announced the acquisition of technology assets and related patents from Elevated Consciousness. The accounting firm mentioned that its acquisition has been from a start-up based in San Francisco, California.
The startup specializes in developing solutions for the crypto-asset ecosystem like the Andy Crypto-Asset Accounting and Tax tool (CAAT) which connects with multiple crypto exchanges and wallets, allowing for better visibility into transactions and inventory. The CAAT tool was developed by a team of entrepreneurs led by CEO, VJ Anma, a Silicon Valley entrepreneur who developed the platform based on his experience as a cryptocurrency fund manager, combining innovative technology with the rigor to meet ever-changing requirements accurately.
“Cryptocurrencies and blockchain are transformational forces with a strong potential to fundamentally change the way business is done,” said Kate Barton, EY Global Vice Chair – Tax Services. “CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment,” she added, quoted in the corporate announcement.
The uncertainty in applying existing guidance related to the timing, character, and source of income generated in connection with trading and investing in crypto-assets requires the use of flexible solutions. By allowing taxpayers to model different potential outcomes, they are better able to assess their risk related to reporting taxable income for this new asset class. Technologies such as CAAT can help EY member firms and their clients effectively navigate this analysis.
“Numerous firms are interested in technology around cryptocurrencies like CAAT, but the unparalleled entrepreneurial know-how and experience that the Foundry offers is what attracted us to the EY organization,” said Anma. “The organization is positioned to be a leader in the blockchain and crypto-asset space. My team and I are excited to support EY as the technology is taken to the next level.”