April 3, 2019 | 4-minute read (784 words)
Cryptocurrency and blockchain are going through impressive growth right now, and it looks like soon they will go into hyperdrive. Last month The New York Times reported that Facebook is jumping into the crypto space and they’re hiring a significant number of new staff to help them go all in with blockchain. Similarly, big brands like Bayer, IBM, JP Morgan, and Square are all also getting into crypto. And even with some regulatory restrictions impacting the popularity of initial coin offerings (ICOs) to help crypto startups fundraise without banks or venture capitalists, it’s only a matter of time until we’re all using cryptocurrency in our daily lives.
These monumental shifts will have a significant impact on companies in the crypto space. According to Steve Olson, a consulting Chief Financial Officer (CFO) for Early Growth, the demand for detailed reporting in the crypto space will only increase and become more stringent. Being able to account for all transactions and holdings professionally will become a pressing, and ever-growing, demand.
Steve speaks from personal experience. He’s been in the crypto space over a decade and even supported Ripple Labs back when Ripple was just two founders and new. On top of that, for the past five years, Steve has been working with Coinme, a fascinating company that uses ATMs to help anyone easily purchase blockchain coins. Since beginning work with Coinme back in 2014, Steve has seen tremendous changes to this space. Steve points out that after Coinme had a successful Series A Funding and had a token sale in 2017, the company also had to have a full audit, which proved to be no easy task. They initially found no firms that would do the review due to the regulatory uncertainty around Token Sales (ICO’s), and it took over six months to find a company that would. Of course, Steve and Coinme did eventually find a company to do the audit, and they continue to see more and more success in their growth.
Steve and other experts expect there will be more tax regulations and demand for pristine books that account for all assets and expenses (account holdings and transactions will be more stringent). Cryptocurrency is serious business now, and we can be confident that tax rules and regulations will become increasingly more specialized and will demand increased expert attention.
If you are in crypto, this is excellent news. According to Early Growth consulting CFO Tina Gregory, the new growth in blockchain is helping to break the grasp of old institutions that hinder commerce. Tina shared how Veem has made it more feasible than ever for anyone in any part of the world to do business. Blockchain removes a litany of old complications in settling payments. Both Tina and Steve say the growth of Lukka (formerly known as Libra) makes it easier than ever for blockchain startups to meet compliance considerations and achieve accurate financial reporting. Have expert accounting support.
For Tina Gregory, the most exciting element of cryptocurrencies’ growth is how much easier technology makes it for people and businesses to participate equitably in commerce. From a company like Swarm Fund that allows small companies to create equity and for individuals to invest in opportunities formerly only available to larger investors, to Veem that allows easy business to business transactions and to other companies like Coinme that have ingeniously created blockchain ATMs for increased accessibility to cryptocurrency for anyone.
It's a fascinating time we’re living in, and the promise of blockchain technology and digital currency allows for new market participants and opportunities. We see a new era of easier transactions and better ways to do business on a global scale - with safer and more secure methods. Because of the blockchain, we’ll soon be doing business safe from identity fraud and from over-regulation from institutions that have held immense power over our business dealings.
While knowledge gaps and a lack of experience can restrain steady growth for businesses in the crypto space, Early Growth Financial Services can assist with the complicated elements of taxes, tax credits, reporting, bookkeeping, valuations, and more. All our CFOs are startup experienced, and several (like Steve and Tina) have crypto expertise, so when your business needs support, you can count on the best knowledge around.
If you’re wondering what you may need to assure your books and accounting are all buttoned up, we’re here. Fill out our contact form or email us and we’ll work with you to build the best service plan to support you, right away.
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