Blockchain technology and digital asset investment have been a heated topic in many economic markets, as more and more financial firms delve into the blockchain-digital asset finance arena, mainly due to emerging regulations and a rise in worldwide demand. It was recently announced that the comprehensive accounting and advisory firm, Ernst & Young, has completed the takeover of Elevated Consciousness Inc., a Silicon Valley-based Cryptocurrency venture start-up Company.
The fee as mentioned earlier will have tremendous implications for Ernst & Young’s entry into the cryptocurrency realm. It will give the company exclusive path to the CAAT (crypto-market Accounting and Tax software), allowing it to control records of global buying transaction history, covering various exchanges and wallets for revenue recording. In effect, the crypto-market Accounting and Tax software, one of the best tax software is getting traction among crypto watchers. By aggregating the activity on a myriad of crypto exchanges, it presents a complete picture of what’s going on in the markets. The tool is well adapted to an environment as known for its volatility as crypto.
The purchase represents another move by Ernst & Young’s innovation-driven group to build a secure foothold in the growing blockchain and cryptocurrency industry.
Kate Barton, the Global Vice Chairman of Tax Services, is worried about the purchase, commenting, “Cryptocurrencies and blockchain are transformational forces with a strong potential to change the way business is done fundamentally. CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment.”
The Companies in Question
Regarded as one of the most comprehensive professional services on the global stage, Ernst & Young was formed in 1989, a result of the incorporation of Ernst & Whinney with Arthur Young & Co. headquartered/situated in London; Ernst & Young operates as a chain of member firms, described as separate legal entities in the countries they serve. Assurance, financial auditing, advisory services, and tax consultation are just a few of the services offered by the firm. Over the years, the company has gained itself a host of awards.
Elevated Consciousness is a San Francisco based Crypto-Technology Start-up, established and managed by VJ Anma (CEO), an ex-crypto-fund manager. CAAT, the company’s software, concentrates primarily on integrating investment management functions, a necessary asset to have in this dramatically moving industry environment.
Industry Shift
This latest purchase by Ernst & Young is part of a more meaningful shift of focus in the industry, as other important financial firms like Goldman Sachs are also increasing their cryptocurrency investment offerings with a custodial solution, allowing Goldman Sachs to hold cryptocurrencies in lieu of funds, offering a much-needed safeguard against the imminent warning of hacking and data breaches.
Several major financial firms have become receptive to the digital currency and blockchain phenomenon, realizing their potential to disturb many industries worldwide. This is also not Ernst & Young’s first blockchain venture, as the company’s Switzerland branch has been receiving Bitcoin payments for its services. The firm has also installed a Bitcoin ATM, exclusively for workers and passers-by.
If an accounting firm as large as EY (one of the “big four”) is this bullish on crypto, other larger players can’t be far behind.