BDO has announced it will provide comprehensive audit and assurance services for blockchain companies and assets including cryptocurrencies, security tokens, stablecoins, trading platforms along with initial coin offerings (ICOs) and funds.
The mid-tier firm will provide its services via a partnership with Singapore and Sydney-based Decentralised Capital, a specialist blockchain firm focused on developing institutional-grade digital assets and services.
“One of the biggest barriers holding institutional investors back is the lack of transparency about the quality of digital assets. By providing comprehensive audit and assurance services, our entry into this growing sector will be a game-changer for new investment into this asset class,” said BDO national leader for financial services Tim Aman.
“BDO will undertake a range of assurance services for this sector including financial statement audits; controls assurance reports; anti-money laundering, counter-terrorism and fraud independent reviews; accounting advice; and board governance support.”
Decentralised Capital founder Stephen Moss said that the partnership with BDO is a crucial next step in creating credibility for the blockchain industry, particularly in light of the recent criticism over Tether.
“Investors have historically found it difficult to distinguish whether projects are reputable and adequately asset-backed, given the lack of services in audit and assurance from reputable firms,” Mr Moss said.
“Projects seeking to mislead investors have historically relied upon the fact that reputable audits are not offered in the blockchain industry, and we’re about to remove that excuse and bring some real credibility to the sector.
“This is an essential requirement for the blockchain industry to evolve into securities and open the doors for institutional involvement.”
The first project to be audited by BDO will be gold-backed token xbullion, which recently received investment from ASX-listed blockchain company DigitalX.
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.