Ernst & Young Acquires Accounting and Tax Crypto Software Company
EY has acquired accounting and tax software by San Francisco-based Elevated Consciousness.
Big Four accounting firm Ernst & Young has joined the increasing number of firms turning to cryptocurrencies with the acquisition of a cryptocurrency software.
Backed by client demand, the software will facilitate accounting and tax matters related to cryptocurrency trading. Compiling trades from various accounts across different exchanges can be a daunting task.
Ernst & Young ventures into the cryptocurrency sector
The cryptocurrency investment software acquired by the firm is called Elevated Consciousness, a Silicon Valley-based startup.
Elevated Consciousness is a type of software referred to as a Crypto-Asset Accounting and Tax (CAAT), and the purchase will help EY to manage investments executed in cryptocurrencies.
The Crypto-Asset Accounting and Tax (CAAT) software is particularly used to monitor trading transaction history across multiple exchanges and wallets for revenue reporting.
The acquisition of Elevated Consciousness will grant EY exclusive access to the CAAT software which will aid their clients in investing in crypto assets.
The CAAT software will prove an indispensable tool as Ernst & Young embarks on a journey to extend its services into the growing blockchain and cryptocurrency sectors.
EY’s Global Vice Chairman of Tax Services Kate Barton said in the official PR:
“Cryptocurrencies and blockchain are transformational forces with a strong potential to fundamentally change the way business is done. CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment.”
The acquisition is inspired by EY’s Americas Tax Innovation Foundry, a division of the firm focused on drawing in new digital solutions for global expansion of the firm.
Paul Brody, Leader of EY’s Global innovation said the following about the acquisition:
“This acquisition is another element in building out a portfolio of BLOCKCHAIN and cryptocurrency solutions across our businesses. … We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry’s broadest sets of technology and process services in tax and assurance.”
The leader of the Foundry also hinted at the possibility of an increased interest in cryptocurrencies on behalf of the company’s clients. He said:
“I look forward to all the opportunities in tax and accounting that this technology will afford our clients and PROFESSIONALS in such a dynamic and exciting market.”
The CAAT too developed by Elevated consciousness integrates investment management functionality with regulatory adaptability which makes a perfect fit for EY, a firm shifting industry environment.
Growing interest of institutional investors in cryptocurrencies
Ernst & Young is not the first or the only major financial firm to explore the possibilities of the blockchain technology or invest in a crypto-related project.
Over the last couple of months, the industry has seen heightened interests from institutional investors as regulations emerge with client demands.
Bitcoinist reported earlier this month that nine banking giants, including Citigroup and Barclays, are taking part in an app store trial for programs which are based on blockchain technology.
PricewaterhouseCoopers (PwC), one of the Big Four accounting firms, made one of the first moves into cryptos when the firm announced that it would accept Bitcoin as a form of payments from its clients.
Goldman Sachs – one of the world’s largest investment banks, recently reiterated its plans to roll out a cryptocurrency custody solution so that it could manage Bitcoin for its clients.
While it may take some time before the move by institutional investors into the cryptospace is felt, the migration of these firms into the industry is definitely good news cryptocurrencies.