Professional companies like the Big For are creating something new in the blockchain and crypto space. But is this enough? Blockchain technology after it took over cryptocurrencies has started to gain incentive. The whole enterprise blockchain market is supposed to reach $21 billion over the next five years.
Professional companies like the Big For are creating something new in the blockchain and crypto space. But is this enough? Blockchain technology after it took over cryptocurrencies has started to gain incentive. The whole enterprise blockchain market is supposed to reach $21 billion over the next five years. During the whole 11 years both the sectors have grown maturely, which ended up with highly respectable organisations handling the technology with more seriousness as they handle the issues that come their way by implementing blockchain and the use of digital assets.
Professional service giants are those who take big responsibilities in breaking down new market challenges. The big four firms and fortune 500 companies are working together with a number of blockchain and crypto companies on ways to fight off the regulatory uncertainty, interoperability challenges, consensus models and development of the technology. According to Henri Arslanian, PwC’s global crypto leader, the big four firms have a very important role to fulfil, they have to play in the advancement of the cryptocurrency ecosystem, “although bitcoin was designed with a trust less ideology, the reality is that the industry still requires trusted entities to catalyse the development of the ecosystem.”
“just within the cryptocurrency sector, we’ve conducted over 350 engagements in the last 18 months,” said Arslanian. pwC’s crypto teams are not concentrating on tax and accounting challenges, but audit and assurance services are also required. “Over the last couple of months, we’ve expanded our work. We recently closed the first ever crypto fundraising deal at PwC, in which we led a $14 million series A round for a swiss-based crypto firm with Asian family offices. We are also the auditor for BC group, a publicly listed crypto company in Hong Kong.”
The big four firms have a very crucial part when it comes to performing audits for crypto and blockchain companies. BC Group CEO, Hugh Madden said that PwC served as the company’s official auditor for two years now. So basically, the company must set the standards for better and improved performance, security and compliance. “Auditing, like regulatory clarity, provides confidence to all stakeholders that companies are operating transparently and adhering to expected industry standards. As the business of digital assets continues to grow and mature, and compliance and regulatory standards become more robust, auditors will continue to play a pivotal role.”
According to Madden it’s a bit complicated for a digital asset firm to go through an audit, which involves the valuation methodology and proof of control, covering both cash and digital assets. It also has independent verification of financial records against public blockchain data. Forbes conducted a survey to understand the importance of auditing and blockchain the results were that 79% of these professionals expect their auditor to convey the use of blockchain’s impact on their business or the financial reporting environment. “SEC issuers will want to design blockchain technologies to support the entity’s internal control over financial reporting, being able to demonstrate how these technologies achieve their objectives in a well- controlled environment is critical to a successful blockchain strategy. If the technology is not auditable, the immense benefits it brings, such as increasing efficiencies and cutting costs, may not be realized.”
Big four are attempting to highlight the importance of auditing for crypto companies, they are also trying to work on creating blockchains system. For instance, KPMG gives a bunch of blockchain-based software solutions. According to Arun Ghosh, KPMG’s U.S blockchain lead, the firm has witnessed a marked growth in revenue from the blockchain initiatives done the previous year. Ghosh believes that the recent KPMG projects have been focusing on enhancing blockchain strategies, participant onboarding and governance and operating models. During the previous year, KPMG supported Microsoft, Tomia and R3 to built a blockchain solution for telecom industry in the making for 5G networks. Ghosh also added that the firm has seen a right amount of growth in interest in the use of blockchain by combining with other technologies such as IoT, AI and machine learning. During February, KPMG came up with a new U.S patent for a blockchain based technique made specifically to increase trust in AI data management practices. Ghosh thinks this is a very crucial development for KPMG as it proves how important it is for the convergence of AI and blockchain to enable trusted artificial intelligence, he also believes the pandemic will boost these models. “In the coming years, we expect growth in enterprise blockchain and network-based models that support ‘COVID-safe’ supplies, identities and products. This is already being seen as there is increasing intersectionality with other technologies like IoT, AI and Machine learning.”
“providing accounting services for crypto clients and businesses is a good place to start. But we have seen a lot of centralized players try to innovate in the blockchain space and many of them miss the point, as they try to keep control by creating centralized, private blockchains.”