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The Need For Trusted Crypto Accounting Solutions, A Goal To Be a Leader in Corporate Governance

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This is a sponsored article provided by Verady.

Decentralized cloud storage platform Storj Labs is one of the most exciting projects in the blockchain-based technology space. Embodying many of the best qualities of decentralized and new cryptocurrency technologies — including peer-to-peer functionality, open-source development, encryption and blockchain-powered payments — it is designed to make a core function of our digital world faster, cheaper and more secure.

But when any cutting-edge project gets to a certain size, it will invariably need to leverage the tools provided by its peers. Following a token sale in 2017, Storj’s financial complexity changed dramatically and this, in essence, is how Storj came to find Verady and its Ledgible system for crypto-based accounting and reconciliation.

“We were working on version two of the platform, it was live and we were doing something on the order of magnitude of 100,000 micropayments a month,” explained Matthew May, Storj’s CFO. “Generally, we are always trying to have the best practices for how things were being tracked and managed, but it was challenging to have a single source of truth for what the company’s total crypto holdings and activities were looking like in real time.”

Verady’s offering stood out for its on-chain transactions focus when May conducted a comprehensive search of the platforms available to help Storj Labs accurately track and manage its accounting. After evaluating various industry solutions, Verady’s Ledgible was a good fit for the needs of the company. The platform’s ease of use and integrations with outside accounting platforms proved critical for Storj, and the company soon realized significant cost savings in tracking Ethereum’s gas payments alone. It also became a leader in cryptocurrency governance and compliance using the tools from Verady.

“Storj strives to be an example for corporate governance and how to do things the right way in this new world,” May explained. “We have a strong desire to lead the way in reporting to our stakeholders as evidenced by our quarterly token report. Ledgible is the primary source of truth for that report. It enables a layer of transparency that we want to deliver, but the process was a challenge before Ledgible.”

Before Verady, Storj (like many decentralized businesses) managed its accounting and reconciliation manually — oftentimes using an array of spreadsheets to track thousands of transactions. This approach may be convenient at first but lacks the functionality needed as businesses scale. 

“As we scaled the number of Storage Node Operators we needed to pay on a monthly basis, we found an increasing need for a solution that would help us better track ETH gas fees,” May said. “At the time, we were sending out tens of thousands of payments each month, which scaled to over 100,000 and even a slight decrease of fees on each transaction could help us capture significant savings.”

Verady recently completed a System and Organization Control (SOC) audit for its Ledgible platform as part of its commitment to integrity and trust. Accuracy and quality of data is a priority for the Verady team so it can offer a solution that meets high standards and integrity. SOC is a universal framework developed by the American Institute of Certified Public Accountants (AICPA) to verify compliance and a strong system of internal controls by financial and technological institutions.

The Growth of Ledgible, in Partnership With Storj

The partnership between Ledgible and Storj has benefited both companies and their early adopters. As one of the first significant adopters of the technology, Storj has provided feedback and real-life use cases that have helped inform Verady’s refinement of its accounting and reconciliation solution.

Ledgible’s feature set and early roadmap were shaped by Storj as an early adopter. They were a great help,” said Verady Co-Founder Kell Canty, “Their forward-looking requests for Ledgible to incorporate tracking, reporting and compliance of their own token is a fantastic use case outside of the other core capabilities. It also shows their dedication to financial transparency and responsibility.”

After becoming a Verady client, May also joined Verady’s advisory board to help the team building Ledgible better understand the needs of users, particularly CFOs and those who are responsible for the regular accounting of a company’s crypto holdings. 

It’s this kind of flexibility and potential for growth that Verady feels is critical to Ledgible’s continued success. For instance, with new regulatory guidance for the industry arriving from federal agencies (and more sure to come), Verady will ensure that its product evolves as well.

Verady’s commitment to providing best-in-class offerings that support the cryptocurrency ecosystem, even as the space changes, has resonated with Storj’s and Verady’s other customers. The approach has resulted in clients, including Storj, who not only use Ledgible but also recommend the platform to peers throughout the industry.

“For companies that are tracking crypto and performing reconciliation manually or have built some home-grown solution, the value proposition for Ledgible is really simple,” May said. “Your focus should be on the execution of your business. Period. Even though we’re in the crypto space, we depend on proven solutions like Ledgible to handle the complicated and ever-changing world of crypto accounting so that we have more time to spend on our own fundamentals.”

Tax Solutions, More Innovations To Come

The Internal Revenue Service (IRS) has released current guidance regarding tax treatment of crypto assets, and Verady has been hard at work on extending Ledgible’s platform and its tax capabilities in accordance with this guidance. 

“Lately, we are seeing increased activity and enforcement from regulatory agencies in the United States, particularly the Internal Revenue Service,” Canty said. “We are proud to continually provide best-in-class, certified crypto auditing and accounting solutions. Now we are leveraging that expertise in the area of cryptocurrency tax as well.”

Global tax and accounting giant Thomson Reuters and Verady recently announced a collaboration on their Virtual Currency Organizer to help taxpayers have certainty on their transaction history and underlying crypto assets.  With a button click, Ledgible users or their CPAs can create reports ready for Thomson Reuter’s GoSystem Tax and UltraTax — both of which integrate this cryptocurrency data to streamline preparation and minimize audit risks with full data auditability.

And how does May view the new tax solution and focus on continued innovation?

“Their well-documented commitment to innovation is a real gift to the crypto industry,” he said, “They have an accounting solution that provides us with everything we need to prepare our corporate tax returns in an environment that seems to be ever changing. We greatly value the relationship as we continue to strive to be a leader in compliance in this emerging space.”

The post The Need For Trusted Crypto Accounting Solutions, A Goal To Be a Leader in Corporate Governance appeared first on Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/the-need-for-trusted-crypto-accounting-solutions-a-goal-to-be-a-leader-in-corporate-governance?utm_source=rss&utm_medium=rss&utm_campaign=the-need-for-trusted-crypto-accounting-solutions-a-goal-to-be-a-leader-in-corporate-governance

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Bahrain’s Central Bank authorizes U.K’s Fasset to test blockchain-based solutions

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The Central Bank of Bahrain today authorized U.K-based Fintech firm, Fasset, to begin testing the tokenization of hard assets in Bahrain’s regulatory sandbox, according to a press release shared with AMBCrypto.

The firm has so far raised around $4.7 million in a pre-seed round from “strategic backers” in the UAE, Saudi Arabia, Bahrain, Kuwait, and Singapore.

The announcement comes on the back of Fasset announcing the roll-out of its flagship crypto-exchange, FEX, in Bahrain next year, with the announcement also stating that it will be open to investors from Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. The announcement, however, did not expand on whether Fasset would acquire any additional permits.

Traditionally, the region mandates these platforms acquire a certification from the Bahrain-based Shariya Review Bureau (SRB), a certification that allows firms to abide by the tenets of Islamic law (that do not permit gambling and taking interest on loans, among others.) While this may seem like an additional, and maybe even an unnecessary step to outsiders, the certification is seen as an advantage in the region since it allows firms to unlock a network of investors observant of Islamic financial policies.

In fact, according to a 2017 study by the Malaysia International Islamic Financial Center, investments from networks that adhere to Sharia are said to be worth more than $70 billion. Algorand‘s network, for instance, has already acquired the said Sharia certification to operate in Bahrain.

While local laws in the Gulf have contributed to cryptocurrency trades being restricted, like Bahrain, the UAE and Saudi Arabia are also focusing on adopting blockchain tech. This could stem from the fact that the region is home to a huge number of expats that hail from developing markets, a demographic observation that might be motivating the Gulf to take on blockchain tech to expand on remittances.

For instance, UAE-based retail bank, RAKBank, adopted Ripple’s blockchain tech to widen its remittance routes to provide quick cross-border payments to India and Bangladesh. Meanwhile, Chainanalysis had reported that the Saudi Arabian Monetary Authority (SAMA), Saudi Arabia’s central bank, “has conducted several blockchain initiatives,” including using blockchain technology to “deposit funds to local banks.”

With the launch of FEX and its entry to Bahrain’s regulatory sandbox, the firm may soon compete with another crypto-exchange, Rain, with the latter already operating in the Kingdom with a full license from the central bank.

The most recent development is only evidence of the Gulf embracing blockchain tech.

Source: https://eng.ambcrypto.com/bahrains-central-bank-authorizes-u-ks-fasset-to-test-blockchain-based-solutions

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Is Bitcoin back in the lead? Falling ETH IV suggests so

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The cryptocurrency market has never been averse to volatility. Bitcoin and Ethereum, the two major crypto assets’ relationships have spelled the future of most alts in the market, and currently, the Ethereum’s lead has been challenged by the largest crypto, Bitcoin.

The spread between the six-month-at-the-money implied volatility for Ether and Bitcoin, a measure of expected relative volatility between the two assets declined to 4.3% on 28 September, as per the crypto data provider Skew. This level was unseen since July.

Implied volatility suggested the market’s volatility expectations and risks involved with a certain asset over a specific period and is calculated using the prices of an option, time of expiration of the underlying assets, and others. The ETH-BTC implied volatility differential had topped on 22 February and has been seeing a constant push and pull ever since. ETH and other alts were outperforming BTC in February, May, and August, as the largest asset – BTC went under a period of consolidation.

Due to this, the market was expecting a higher Ether price volatility in comparison to Bitcoin. The volatility and growth were driven by the DeFi hype, but currently, DeFi has been facing a down period as top projects were falling and the volume was retracting. This clubbed with the latest expiry of 460k ETH options, may have caused the IV for ETH to slip lower. While BTC was breaking away from a consolidating price and the dominance was once again noting a rise.

Source: TradingView

Bitcoin dominance has been growing over the past couple of weeks and has seen the formation of a double bottom noting a surge from 59% to 61%. If the dominance index continues to rise, the growth of the altcoin will be limited along with Ethereun, while BTC surges in the short-term.

Source: https://eng.ambcrypto.com/is-bitcoin-back-in-the-lead-falling-eth-iv-suggests-so

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Bitcoin Difficulty Ribbon Could Indicate Imminent Price Increase

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One is called the difficulty ribbon, and it has just broken out of the green buy zone for the first time since March in terms of compression. The metric was reported by analytics provider Glassnode, which added that historically, these had been periods characterized by a positive momentum indicating significant price increases.

Historical Bitcoin Buy Signal

The Bitcoin difficulty ribbon was created by chartist Willy Woo. It consists of simple moving averages of network difficulty enabling the rate of change of difficulty to be easily seen. Periods of high ribbon compression, such as the current situation, have been historically good buying opportunities.

There have been several significant price increases over Bitcoin’s lifespan that followed this ribbon compression breaking out of the green zone. The most recent was around April 2019 when BTC prices surged from below $5k to top out over $13k just three months later.

It was also observed that there had been a massive divergence in difficulty ribbon compression and Bitcoin price over the past six years. However, the chart has used a logarithmic price chart, which may have caused that anomaly.

Bitcoin’s hash ribbon is a similar metric, and CryptoPotato reported that it was flashing buy signals back in July. In the five weeks that followed, BTC price surged 34% to make its 2020 high.

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BTC Price Action Update

Looking at the shorter term, Bitcoin’s price chart has just printed another ‘Bart Simpson’ pattern with a sharp 2.3% decline in just over an hour, wiping Monday’s gains.

Prices had recovered to $10,725 at the time of writing, and sentiment appears to be bullish for BTC, according to a recent poll by analyst and trader Josh Rager.

Bitcoin is currently trading right on the 50-day moving average, which is acting as resistance at the moment. The next step above this is a break above $11k, while on the low side, there is strong support at the $10k level. Analyst ‘CryptoHamster’ added:

“After the breakout the resistance line became support. Now it is getting tested. If it holds, it would be a very nice sign. But it has to hold, otherwise the whole growth is just a short squeeze.”

Short term charts suggest price could go either way, but longer-term on-chain analytics, such as the difficulty ribbon, are more bullish.

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Source: https://cryptopotato.com/bitcoin-difficulty-ribbon-could-indicate-imminent-price-increase/

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