KPMG to help US crypto firms comply with reporting standards
Big Four accounting firm KPMG has formed a strategic alliance with crypto accounting software Cryptio to help crypto companies in the United States comply with generally accepted accounting principles (GAAP).
According to the announcement, the KPMG-Cryptio strategic alliance aims to establish control in cryptocurrency companies for better accounting of crypto assets.
Crypto reporting with KPMG support
Brian Consolvo, director of technology risk at KPMG, emphasized the importance of streamlining the accounting practices of digital assets in the US and meeting regulatory obligations. He added:
“We (KPMG) understand the importance of robust accounting and reporting, the risks associated with digital assets and the importance of robust internal controls.”
Through this partnership, crypto-related enterprises and institutions will be able to meet their GAAP accounting and reporting obligations in the US using Cryptio's accounting software. Antoine Scalia, founder and CEO of Cryptio, sees their alliance with KPMG as a foundation for the long-term sustainability of the crypto industry. Elaborating on the partnership:
“Our alliance with KPMG empowers enterprises and institutions to navigate regulatory reporting requirements, audits and accounting processes with confidence. Together, we are setting the standard for regulated institutions adopting digital assets.”
Related: Institutional DeFi players bring commercial real estate onchain: KPMG exec
Why do institutional investors choose crypto?
According to Kunal Bhasin, partner and leader of KPMG Canada's digital assets practice, one of the main reasons institutional investors are becoming more attracted to crypto is rising debt and rising inflation.
A recent KPMG study found that nearly 40% of institutional investors reported direct or indirect exposure to crypto assets by 2023 — up from 31% in KPMG's 2021 study.
Of the 65 respondents to the KPMG survey, 31 were institutional investors, with the majority managing more than $500 million in assets, while the remaining 34 were financial services firms.
The survey found that a third of institutional investors have allocated 10% or more of their portfolios to crypto assets – up from a fifth two years ago. A maturing market and improved security infrastructure are key drivers of increased customer demand for crypto asset services.
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