Auditing firm BDO could follow Mazars in abandoning crypto clients

Hull Invest

BDO could be the latest audit firm to suspend or restrict services to cryptocurrency companies. wall street journal December 16th.

A report from a news publication cites a BDO representative who said:

Like several other professional services firms, we are currently evaluating our approach to this area and the work we do for our clients.

These changes may force a large number of cryptocurrency companies to find new auditing services.Most notably, Tether depends on BDO Italia monthly certification statement From August of this year.

Stasis, which issues the euro-pegged EURS stablecoin, also started relying on BDO Malta for monthly and quarterly audits in 2018.

Payments company Revolut, which includes cryptocurrency features along with more general payment features, also relies on BDO for some services. criticized BDO. and Mercado Bitcoin also rely on BDO for audits, according to a Forbes survey earlier this month.

BDO did not explicitly state that they would drop these or any other clients. However, that statement was made shortly after two other audit firms decided to stop providing services to the crypto industry, so it is meant to hint at that possibility.

Both Mazars and Armanino plan to stop working with their crypto clients soon. Binance has communicated his Mazar intentions to sever ties with “all cryptocurrency clients around the world” after the service was shut down this week. Elsewhere, Forbes, citing sources familiar with the matter, reported that Armanino would be removing its crypto client.

The apparent outflow of audit firms in the cryptocurrency industry appears to be due to the collapse of FTX. Armanino served as an auditor for his FTX, which was the subject of a class action lawsuit following the exchange’s bankruptcy last month. As a result, audit firms may view the cryptocurrency industry as an unnecessary risk.

This concern does not seem to extend to large audit firms such as Deloitte, Ernst & Young, PwC and KPMG. These companies frequently work with cryptocurrency companies and have not commented on the matter.

Posted In: Exchanges, Regulation

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