Large professional services firms such as the Big Four are developing technology trends in blockchain and cryptocurrency. Will they make a difference? Blockchain technologies and cryptocurrencies are gaining popularity. The blockchain business will generate $21 billion in revenue over the next five years.
After only 11 years, all sectors have seen significant growth, with established businesses beginning to take the technology seriously and addressing the issues associated with digital assets and blockchain implementation.
Unsurprisingly, specialist law firms and professional services behemoths play a growing role in tackling various industry concerns. Numerous blockchain technology and cryptocurrency services are collaborating with Fortune 500 and Big Four corporations to address concerns such as interoperability, regulatory uncertainty, technology development, and consensus models.
According to Henri Arslanian, global crypto head at PwC, the Big Four corporations are essential in developing the crypto ecosystem. “Despite Bitcoin’s trustless ideology, the industry continues to require trusted authorities to drive its growth,” he stated.
When Arslanian joined PwC three years ago, he observed that few individuals were sold on cryptocurrency. However, due to the significant development he anticipated, the company’s Hong Kong office began accepting Bitcoin payments two years ago. As a result, PwC has established crypto teams in 20 countries, totalling 200 employees.
Arslanian claims that they have conducted over 300 engagements in the cryptocurrency market over the last 18 months. Along with tax and accounting services, PwC’s crypto specialists offer assurance and auditing. “Our work has expanded significantly over the previous few months,” Arslanian explains. PwC finished its first cryptocurrency fundraising round, a $14 million series A investment for a Swiss crypto startup with Asian contacts. Additionally, PwC conducts audits for BC Group, a publicly-traded Hong Kong cryptocurrency corporation. Trading cryptocurrency with the appropriate app, such as the BitQT trading platform, improves the user experience.
Importance of Audits
The Big Four firms are crucial for auditing blockchain and cryptocurrency enterprises. According to Hugh Madden, the company’s CEO, PwC is currently serving as BC Group’s primary auditor for two years. OSL is the primary holding company for the publicly traded digital asset and fintech firm. BC’s purpose, according to Madden, is to use digital assets in Asia’s investment sector.
As a result, the organization must create compliance, performance, and security standards. As Madden noted, audits provide stakeholders with confidence that businesses conform to industry norms and function clearly, similar to regulatory clarity. The auditor’s job will remain critical as digital assets mature and rise in value, and regulatory and compliance frameworks become more sophisticated.”
Additionally, Madden observed that performing an audit by a business specializing in digital assets is challenging since it entails methodology, valuation, covering both digital assets and cash, and confirmation of control. Additionally, financial records are independently validated against publicly available blockchain data.
KPMG and Forbes Insights conducted a poll earlier this year to determine the value of blockchain expertise and audits for finance leaders. According to 79% of these experts, their auditors should provide insight into the impact of blockchain on their firms.
Erich Braun, KPMG’s US blockchain audit leader, stated in an interview with Cointelegraph that an organization’s blockchain system should be developed to fulfil both accounting and professional needs and legal regulations and accounting standards. SEC issuers will need blockchain technology to bolster their company’s internal control over financial matters.
To be effective, a blockchain must demonstrate the ability to accomplish its goals in a controlled environment. A system that is not auditable will be incapable of delivering the primary benefits of auditing, which include enhanced efficiency and cost savings.