Key Takeaways
- Crypto accounting firms possess in-depth knowledge of blockchain technology, cryptocurrency transactions, and related tax regulations.
- They usually offer guidance on regulatory matters, helping clients understand and adhere to evolving compliance standards.
- These firms also help individuals and businesses navigate the complex tax landscape of cryptocurrencies, ensuring compliance with local and international regulations.
The impressive rise of Bitcoin, Ethereum, and other cryptocurrencies over the past several years, coupled with the immense potential blockchain and distributed ledger technologies have shown across all industries, has generated a wave of innovation and disruption in most economies.
In fact, crypto and blockchain have proved so prevalent and useful that giants across all industries are now ready to jump aboard the crypto bandwagon. Nowadays, tech giants such as Google and Microsoft are considering harnessing these unique technologies, and law firms are launching specialized services for crypto regulations.
As one might expect, the world’s biggest accounting firms have not been ignorant of this rising trend, and many have launched their own blockchain and cryptocurrency audit services.
So much so that the Big Four (the world’s most important accounting firms: EY, PwC, Deloitte, and KPMG) firms disclosed in 2018 that they are currently looking into developing audit technology for cryptocurrencies and blockchains. Below is a list of cryptocurrency accounting firms—including the Big Four and beyond.
Ernst & Young (EY)
Ernst & Young (EY) has been working hard in building tools that can help companies identify the inherent risks of relying on blockchain technology and using various crypto-related models.
In April 2018, the company made headlines when it announced the EY Blockchain Analyzer, a technology designed to facilitate EY audit teams’ gathering of an organization’s entire transaction data from multiple blockchain ledgers. This technology allows EY audit teams to extract data from various blockchains to assist companies or individuals in auditing various types of accounting-related information.
Furthermore, in an October 2023 press release, Fidelity Digital Assets, a subsidiary of Fidelity Investments, became the first inaugural corporate client to embrace EY’s latest blockchain analytics tool, the EY Blockchain Analyzer: Reconciler.
Deloitte
Deloitte is another member of the “Big Four,” and it provides audit, tax, consulting, enterprise risk, and financial advisory services for a wide range of professionals and companies worldwide. As of 2017, Deloitte is the fourth largest privately owned company in the United States.
Currently, the company is focusing heavily on the technical development and implementation of blockchain technology and on promoting its usage. The firm has been involved in creating one of the first Bitcoin ATMs in Toronto, Canada, demonstrating that exchanging crypto-to-fiat is possible without strict KYC and AML procedures. Since then, the accounting giant has been heavily focused on creating programs for blockchain integration and has even created a division called the “Deloitte Blockchain Lab.”
Notably, in June 2024, Deloitte and Bloomberg Tax & Accounting collaborated to produce a comprehensive guide on the taxation of cryptocurrencies and other digital assets. This joint effort aimed to provide clarity and guidance to individuals and businesses navigating the complex tax landscape surrounding digital assets.
PricewaterhouseCoopers (PwC)
PricewaterhouseCoopers (PwC) is a London-headquartered multinational professional services network that does not need much introduction in the accounting world. It ranks as the world’s second-largest professional accounting service behind Deloitte and has been awarded for consecutive years as one of the most prestigious accounting firms.
The firm has built in-house blockchain solutions like Blockchain Explorer and Transaction Analyzer (BETA) and developed solutions like Travel Rule Integration, Tokenization Framework, Smart Contract Formal Verification Framework, and Digital Asset Valuation Model.
In 2018, PwC employed over 1,000 staff members at the time for a blockchain and crypto program called the “Digital Accelerators Program.”
Moreover, in Late March 2023, PwC formed a strategic joint business relationship with Chainlink Labs to provide companies with Web3 services to seamlessly and securely interface with the growing blockchain economy.
KPMG
Klynveld Peat Marwick Goerdeler (KPMG) has joined the ranks of the aforementioned three “Big Four” members by announcing its intent to drive and expand its blockchain strategy into tax, audit, advisory, and industries. During the summer of 2018, the company worked with various partners to create comprehensive blockchain strategies and ultimately decided to pivot its blockchain business to risk assessment and audit.
KPMG’s approach towards blockchain is very similar to that of EY’s, as both companies have allocated most of their resources to analyze the risk in implementing blockchain and ease the process of using blockchain for companies.
In July 2024, KPMG and leading crypto accounting software provider Cryptio formed a strategic partnership to help US-based crypto companies comply with Generally Accepted Accounting Principles (GAAP). This partnership aims to address these challenges by providing a comprehensive solution for crypto accounting through accurate data, compliance, and efficiency.
IBA Group
IBA markets its team as “the leading experts in crypto accounting,” focusing on developing innovative and comprehensive solutions for all taxes related to cryptocurrencies and blockchain. The firm offers various blockchain account services to help businesses gain an edge in the ever-changing crypto market.
The services include consultations, personal cryptocurrency taxation consulting, connection to cryptocurrency CPAs for Bitcoin and other crypto accounting, and coordination for fund administration. IBA’s palette of services caters to almost all types of businesses or crypto administrators, such as crypto miners, high-frequency traders, early adopters, asset managers, and blockchain leaders.
CryptoTax International Pvt. Ltd.
CryptoTax is a specialized firm that provides tax calculation and compliance services for individuals and businesses involved in cryptocurrency transactions. One of their key services includes calculating cryptocurrency tax liabilities based on transaction history and applicable tax laws. They also offer expert advice on cryptocurrency taxation and accounting aspects, including tax planning strategies.
Notably, CryptoTax has partnered with popular crypto platforms like Koinly and Coinpanda to offer its services, aiming to streamline clients’ crypto tax reporting processes.
Harris & Trotter
Harris & Trotter has a team of professionals with extensive experience in the crypto space, allowing them to understand the unique challenges and opportunities clients face.
The firm is known for its commitment to quality, integrity, and client satisfaction. It leverages advanced accounting software and tools to streamline processes and ensure accuracy. The firm is also well-equipped to serve clients in multiple jurisdictions and provide cross-border expertise.
Notably, in May 2024, the firm’s blockchain unit, Harris & Trotter Digital Assets, successfully raised $10 million in a funding round. The investment was led by Orbs and joined by other prominent investors like Kingsway Capital and RE7 Capital, valuing the company at $85 million.
The funds will be used to expand its client base of crypto-native businesses from the current 500 to a larger scale. It also plans to invest in developing advanced technological solutions to address the unique accounting challenges faced by Web3 projects and refine its existing SaaS offerings by introducing new tools to streamline the accounting process for crypto businesses.
Aprio
Aprio is a renowned accounting firm that provides comprehensive services to blockchain ventures and crypto investors. With a deep understanding of the complex regulatory landscape and accounting challenges associated with the crypto industry, Aprio offers tailored solutions to help businesses in the space.
The accounting firm offers strategic advice on blockchain and crypto operations, including risk management, internal controls, and corporate governance. It also conducts thorough audits to verify the accuracy and reliability of financial information, providing independent assurances to stakeholders to enhance credibility and investor confidence.
Final Thoughts
As cryptocurrencies continue to gain traction, there is a good chance many more accounting firms will launch crypto and blockchain auditing programs. Still, it is a positive sign that the world’s top accounting conglomerates are willing to invest resources into developing crypto-savvy accounting services.
