It will now be easier for cryptocurrency transactions to be audited and tracked with a new software tool launched by Ernst & Young (EY) in the United States. The software supposedly facilitates accounting as well as tax calculations for cryptocurrency transactions, and is part of a rollout piloted by EY all over the world in the blockchain services field.
The software, which has been called EY CAAT, will be offering an innovative technology which specifically addresses clients’ needs across the crypto space.
It is a well-known fact that crypto technology is sometimes baffling for traditional players in the financial field so this solution should be able to provide the difference and kick-start more cryptocurrency usage.
Marna Ricker, EY Americas Vice Chair of Tax Services praised the EY Foundry and professionals team across her practise and described the new software as an important breakthrough.
The pioneering software was developed by integrating recently acquired technology assets and related patents with other EY processes for total functionality. The acquisitions were led by EY Foundry, a corporate venturing unit within EY Tax charged with developing transformational digital businesses. It is now indicative that the accounting and tax field is beginning to delve into cryptocurrency which was considerably shunned beforehand.
EY CAAT will be used to serve institutional clients who have crypto-assets on their balance sheets, as well as both institutional and individual clients who trade such assets on a smaller scale. The firm has seen significant increases in the number of clients that hold and trade crypto assets even though the bear market continues to persist with most coins at multi-yearly lows.
The projects also received heaps of praise from Michael Meisler, partner and EY Global Blockchain Tax leader. He said that the product’s initial validation was pretty phenomenal and that this was only the beginning.
“EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients,” Meisler added.
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