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‘Big Four’ Firm PwC Unveils Tool to Audit Clients’ Cryptocurrency Transactions

Last Updated March 4, 2021 2:40 PM
Harsh Chauhan
Last Updated March 4, 2021 2:40 PM

By CCN.com: Big Four accounting firm PricewaterhouseCoopers (PwC) is expanding into the cryptocurrency audit business with the launch of a new solution. The firm is expanding its “Halo” suite of auditing tools to provide audit and assurance services to those clients that deal in crypto.

According to PwC’s press release:

“PwC can currently use this tool to provide assurance services to clients transacting in Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, LiteCoin, Ethereum, ERC20 – OAX token, and Ripple (XRP).”

PwC is enabling cryptocurrency adoption

PwC’s crypto solution is proof that we are moving toward mainstream adoption of digital currencies. In fact, don’t be surprised to see a spike in cryptocurrency transactions as PwC’s solution will give its clients the confidence to transact using the likes of bitcoin and other digital assets.

This is because PwC’s solution will allow those dealing in cryptocurrency to establish “robust controls” over the key processes involved during crypto transactions. In PwC’s words, its Halo software solution is capable of delivering on two important counts:

“Provide independent, substantive evidence of the “private key and public address pairing” which is one of the pieces needed to establish ownership of cryptocurrency. Securely interrogate the blockchain to independently and reliably gather corroborating information about blockchain transactions and balances.”

This means that PwC’s clients – which could be cryptocurrency exchanges, traders, or other entities transacting in crypto – will now be able to exercise better control over their digital assets. They should be able to keep track of their crypto accounts and the payments made in bitcoin or other cryptocurrencies.

Also, PwC’s clients will now be able to track the ownership of the crypto, which could potentially reduce the chances of funds getting lost.

Big Four firms are racing to take advantage of the crypto opportunity

Big Four accounting firms are increasingly targeting cryptocurrencies as their next big source of revenue.

Earlier this year, Ernst & Young (EY) announced that it has spent millions of dollars to upgrade its Blockchain Analyzer tool, which allows users to calculate taxes on their crypto-assets by automatically calculating capital gains and losses.

But this isn’t the only tool EY has launched to serve the cryptocurrency market. In March, the company announced its Crypto-Asset Accounting and Tax (CAAT) program. This is a cryptocurrency tax tool that’s meant for those EY clients who are specifically investing in cryptocurrencies.

So it is not surprising to see PwC launch a new cryptocurrency audit solution, because this could be a big market thanks to the rapidly increasing interest of institutional investors and hedge funds.

On the flip side, the ability to get cryptocurrency transactions audited thanks to Big Four audit firms such as PwC will encourage more businesses to embrace digital currencies.