Crypto Tax Tool Acquired By Ernst & Youngbr>
Accounting services firm Ernst & Young (EY) has acquired technology assets and related patents from US-based startup Elevated Consciousness. The acquisition is part of EY strategy to expand blockchain-related capabilities and services worldwide.
The deal includes the Andy Crypto-Asset Accounting and Tax (CAAT) tool, which connects with multiple crypto exchanges and wallets, allowing for better visibility into cryptocurrency transactions and inventory. EY said the tool will position the auditing firm as a leader allowing it to serve various organizations that are adopting crypto-assets.
“This acquisition is another element in building out a portfolio of blockchain and cryptocurrency solutions across our businesses,” said Paul Brody, EY Global Innovation Leader, Blockchain. “Tax strategy, planning, and execution will be a key part of everything we build across our solutions, from supply chain management to software licensing solutions. We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry’s broadest sets of technology and process services in tax and assurance.”
EY made the purchase through its US subsidiary EY LLP and its EY Americas Tax Innovation Foundry, a group charged with building new businesses that allow EY member firms in the Americas to continue to provide innovative new digital solutions to clients.
“The Foundry’s portfolio of digital businesses continues to grow as we demonstrate success in our venturing efforts,” said Chirag Patel, leader of the Foundry. “Thanks to VJ’s ingenuity, I look forward to all the opportunities in tax and accounting that this technology will afford our clients and professionals in such a dynamic and exciting market.”
Silicon Valley entrepreneur VJ Anma, who lead a team of entrepreneurs to develop the CAAT tool, said that numerous firms are interested in technology around cryptocurrencies like CAAT, but the unparalleled entrepreneurial know-how and experience that the Foundry offers is what attracted them to the EY organization.
“The organization is positioned to be a leader in the blockchain and crypto-asset space,” Anma said. “My team and I are excited to support EY as the technology is taken to the next level.”
EY is one of the so called “Big Four” tax and accounting companies in the world, which also includes Deloitte, PwC, and KPMG. In late 2016, EY became the first Big Four accounting firm to accept bitcoin as a means of payment for its advisory services.