The United States presents many obstacles for crypto companies, as many federal and state regulatory agencies have actual or potential jurisdiction over the industry. Its unique political environment has contributed to more government skepticism toward cryptocurrencies than seen in other countries, and high-profile crackdowns by the Securities and Exchange Commission make many crypto companies nervous about maintaining a position in the US.

Despite all this, there is also high support for cryptocurrencies in the US, so many crypto companies will not be willing to leave or delay entering the US market. While there may not be a single set of clear and comprehensive guidelines for US crypto companies, there are smart strategies that can help them stay on the right side of regulators. Eight members down Cointelegraph Innovation Circle share tips to help crypto companies improve their US accounting practices and compliance

Use private blockchains

The obvious answer is to use private blockchains. The whole purpose of blockchain is to improve the ability to do trusted accounting at scale. Permissioned access preserves privacy while reducing the cost of providing provably raw data for accounting. This evidence, rather than the data itself, can be sent to ensure compliance with the blockchain shared with regulators. – Stephanie So, A geek

Keep accurate records

After the crackdown on US stablecoins, Binance and Coinbase, I think it is clear that the current US administration and the SEC are on a crypto witch hunt. Companies based in the United States can be targeted by regulators even if they believe they are in full compliance. For this reason, keeping accurate records of customers’ funds and cash movements has never been more important. – Sheraz Ahmed, STORM partners

Adopt a rules-based system

We have seen many crypto companies collapse due to accounting issues. Adopting a rules-based system improves the situation. Compliance and procedures should follow established account protection rules. Although the SEC and other key players have not clarified crypto-regulation, blockchain solutions ensure accountability. Therefore, keeping clear records of customer funds and money movements remains essential. – Ilias the Savior, Flooz XYZ

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Prioritize transparency and collaboration

Crypto companies must prioritize transparency, comply with existing regulations, and work with stakeholders to improve their accounting practices and compliance with US regulations. Robust accounting systems, compliance with AML and Know Your Customer requirements and active engagement will support industry confidence and growth. – Vinita Rathiová, Systango

Provide profit and loss statements to wallet holders

A summary of the trades made by each wallet and presenting this summary to the wallet holder in a detailed profit and loss summary would be a good start. Obviously there are issues such as market valuation considerations, current tax laws and loopholes, but for now providing a summary of the trades and a P&L would be a good start. – Zain Jaffer, Zain Ventures

Implement blockchain-specific accounting software

One important step that crypto companies can take is to implement blockchain-specific accounting software. It accurately tracks and records transactions and helps with tax reporting. Additionally, regularly working with crypto-focused accounting or legal experts can help crypto companies navigate changing regulations and ensure ongoing compliance. – Tomer Warsaw Nuni, Cryptomon

Establish regular internal audits

Establish robust internal controls and regular audits. This includes establishing clear financial policies and procedures, segregation of duties, conducting regular independent audits and ensuring proper documentation and record keeping. These measures can help ensure accurate financial reporting, detect and prevent fraud, and demonstrate compliance with regulatory requirements. – Theo Sastre-Garau, NFT evening

Don’t wait and bring in the experts

It can be expensive for crypto startups to hire lawyers and compliance experts, but it can actually reduce costs. If you wait until later stages to prioritize legal and regulatory compliance, implementing best practices and fixing non-compliant products can be very burdensome. – Wolfgang Rückerl, ENT Technologies AG

This article was published via the Cointelegraph Innovation Circle, a trusted organization of blockchain technology industry leaders and experts who are building the future through the power of connection, collaboration and thought leadership. The views expressed do not necessarily reflect those of Cointelegraph.

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