Mazars in South Africa Selects Verady’s Ledgible for Crypto Asset Confirmations
Worldwide Leading Accounting and Advisory Firm To Use Ledgible for Confirmation of its Global Clients’ Digital Assets
ATLANTA and CAPE TOWN, South Africa, Aug. 18, 2020 /PRNewswire/ -- Verady, the leading cryptocurrency tax and accounting software company, today announced Mazars in South Africa international audit, tax and advisory firm has selected Ledgible to supply confirmation and reporting around its clients' digital currency audits. Understanding how digital assets align with accounting, reporting and verification is key to the adoption of cryptocurrency worldwide. Ledgible is the bridge between cryptocurrency and traditional financial accounting.
Of the eleven Mazars' offices in South Africa, the Headquarters in Cape Town work with many local and global clients with cryptoassets to manage. Mazars is at the forefront of this emerging industry, providing digital currency and blockchain technology services to both domestic and international clients. Ledgible automatically syncs intricate data directly from hosted blockchains and exchanges for these cryptocurrency holdings and transactions which is used by Mazars to obtain the required audit evidence and assurance over clients' cryptocurrency holdings and transactions.
"Traditional accounting practices, risk based audit procedures and reporting frameworks were not designed for cryptocurrency. Our dedicated team however understands the complex challenges our clients face with digital currencies," said Wiehann Olivier, Partner with Mazars in South Africa. "With Verady's solution, tracking, validating and reporting of digital assets become less complex and to include Ledgible in our portfolio of options enables us to connect data to our existing financial platforms making the auditing process seamless for our clients."
"Ledgible offers Mazars a familiar and traditional financial verification, reporting and assurance tool to manage and report confirmations on the digital assets of their clients," said Kell Canty, co-founder and CEO of Verady. "Having an advanced crypto-accounting platform connects the emerging blockchain space with current financial service requirements advancing the cryptoasset industry."
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As part of the Wall Street Blockchain Alliance (WSBA), Verady contributes regularly to working papers, education, and other items on important issues around Cryptoassets and their evolving accounting and tax ecosystem in the United States. Recently, the WSBA asked Accounting Working Group members to collaborate in the creation of a response letter to the Internal Revenue Service regarding their Revenue Ruling 2019-24 as well as the subsequent FAQ’s providing guidance on the taxation of virtual currencies. The letter was designed to offer insight and recommendations, from experts in the cryptocurrency accounting industry, on “some of the most prominent outstanding questions or items for which [WSBA members] are seeking further clarification.”
The WSBA is a non-profit trade association based in New York City and the Accounting Working Group consists of leading companies with diverse backgrounds in the areas of accounting and cryptoasset tax, including Verady (represented by our CEO Kell Canty).
The response letter (which can be read in its entirety at https://www.wsba.co/uploads/3/7/9/4/3794101/wsba_irs_response_letter_-_final.pdf) touches on a variety of issues, but leads with thoughts on perhaps the biggest disappointment in the crypto community since the IRS last released guidance… the classification of cryptocurrency as "property." And while the WSBA letter notes that there may not be a perfect classification for cryptocurrency at the moment, the current classification “as property creates additional compliance and reporting requirements that seems to neither add value to the taxpayer nor merchants accepting cryptoassets as payment for goods or services.”
Instead, the letter asks the IRS to consider “establishing a de minimis exemption for both individuals and merchants” that would establish a minimum transaction value threshold for tax reporting purposes, thus lowering the compliance burden on both smaller individual cryptocurrency users and their accounting professionals.
In further analysis Canty noted, “recent draft legislation proposing exemptions based on amount of potential capital gains may further complicate the already complex accounting and reporting issues around cryptoassets by mandating calculating capital gains on every transaction.”
The letter goes on to provide the following recommendations for other important cryptoasset tax implications, including:
“Obviously there is a lot to work through with such a disruptive technology as blockchain. We look forward to continuing the conversation with the IRS to bring clarity and support for guidance around cryptoasset tax. Cryptoassets’ use and adoption will continue to expand and it is vital to have the guidance, compliance, and tools to support them.”
To learn more about the Wall Street Blockchain Alliance, be sure to check out their website at https://www.wsba.co/membership.html.