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EY buys crypto accounting technology

crypto accounting

Three months ago EY announced a pilot for a cyptocurrency auditing tool called EY Blockchain Analyzer. Today it announced the acquisition of The Andy Crypto-Asset Accounting and Tax (“CAAT”) tool from startup Elevated Consciousness Inc. The addition helps to position the firm as a leader in cryptocurrency accounting and tax.

EY purchased the technology asset and patent, not the company.

The CAAT tool connects with multiple cryptocurrency exchanges and wallets. As a result, it enables a user to view cryptocurrency transactions and inventory clearly.

“CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment,” said Kate Barton, EY Global Vice Chair – Tax Services.

“This acquisition is another element in building out a portfolio of blockchain and cryptocurrency solutions across our businesses,” said Paul Brody, EY Global Innovation Leader, Blockchain. “Tax strategy, planning, and execution will be a key part of everything we build across our solutions, from supply chain management to software licensing solutions.”

“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.”

Asset management community

“We continue to see an increase in consensus among the asset management community that crypto-assets are a viable asset class from an investment standpoint,” said Michael Meisler, Ernst & Young LLP Tax partner, and Tax Blockchain leader.

“The uncertainty in applying existing guidance related to the timing, character and source of income generated in connection with trading and investing in crypto-assets requires the use of flexible solutions. By allowing taxpayers to model different potential outcomes, they are better able to assess their risk related to reporting taxable income for this new asset class.”

“Technologies such as CAAT can help EY member firms and their clients effectively navigate this analysis. CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond.”

Other EY blockchain activity

EY is very active in the blockchain and crypto space. They’ve launched an insurance blockchain with Maersk and announced a royalties blockchain with Microsoft. Plus they’ve published a survey, a report on incentivized healthcare marketplaces, and another on crypto asset accounting.