One of the largest accounting companies worldwide, PricewaterhouseCoopers LLP (PwC) has started conducting cryptocurrency inspections and audits. The addition to its services list is a sign that PwC is paying more attention to the crypto sector — a place that is consistently adopting the characteristics of conventional money.
Different teams over PwC spent all 2018 planning and developing auditing tools that could coordinate the private keys and public wallet addresses, said in a public statement Ralph Weinberger, leader of PwC’s Global Assurance Methodology, Learning and Education Organization.
PwC’s new auditing tools cannot go through the unique code combinations that encrypt each private key. PwC’s tools allow exact tracing of the owners of crypto assets to be made.
The troubles of confirming the sole ownership of crypto resources are one of the few reasons why numerous institutional financial specialists have avoided the sector, which has been hounded by cases of manipulations, frauds and illicit behavior. If cryptocurrency-related companies can be audited by at least one of the Big Four auditing company, it could diminish the levels of instability within the industry. This will be an important move, considering that the global market is resurrecting from its demise during the winter.
Moreover, the Bitcoin price continues to growth at a tremendous speed. The entry of big players that was announced earlier this year, indicated a potential expansion to be happening since the bearish winter. Organizations` involvement are claimed to be major contributors for the upwards rally this year, including the multi-billion Facebook and JPMorgan Chase and CO organizations.
Evaluation of crypto assets done at a very high professional level is considered to be challenging, even with the use of regulatory frameworks and application of rules and laws. There is not a verified procedure for identification of sole owners of crypto assets. The numerous start-up organizations and lack of risk-management tools by auditing companies, make the task even more challenging.
PwC is still in its early stages of crypto audits — it can evaluate eight cryptocurrencies, including Ethereum and Bitcoin. The main reason behind why the auditing tакес so long to commence is that cryptocurrencies use different algorithms and infrastructures, claims Weinberger.