KPMG and Cryptio join forces to create cryptocurrency accounting standards

Audit firm KPMG and cryptocurrency accounting platform Cryptio have entered into a strategic partnership to develop a new accounting methodology that complies with GAAP (U.S. generally accepted accounting principles).

The goal of the collaboration is to help cryptocurrency companies prepare financial statements and set new standards for accounting for digital assets. With no clear definition of digital assets in GAAP, the alliance aims to remove uncertainties and increase transparency for investors.

Current GAAP standards do not clearly define digital assets, making them difficult to account for. For example, MicroStrategy was forced to exclude cryptocurrency data from its reporting at the request of the SEC due to bitcoin's high volatility.