How big of a deal are cryptocurrencies?
So big that the SEC is getting bigger just to keep up.
The regulator is increasing the size of its Crypto Assets and Cyber Unit from 30 to 50 people in an effort to protect investors who dabble in cryptocurrency markets.
Here’s what CNBC had to say:
“Wall Street’s top law enforcer said that the 20 additions will include investigative staff attorneys, trial lawyers and fraud analysts. Both SEC Chair Gary Gensler and Enforcement Director Gurbir Grewal applauded the hires as overdue and key to regulating one of Wall Street’s newest and most popular industries.
“The SEC’s crypto unit “has successfully brought dozens of cases against those seeking to take advantage of investors in crypto markets,” Gensler said in a statement. “By nearly doubling the size of this key unit, the SEC will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity.”
Sounds like there’s room for CPAs to make their mark in a crypto world, too.
“Cryptocurrency can be a complicated asset for businesses that are interested in using it,” Justin Hatch writes for CPA Practice Advisor. “CPAs who understand the technology and are experienced in new guidance and laws concerning cryptocurrency can provide valuable insight for clients as they dive into these new waters.”
Hatch’s article offers a closer look at the benefits and risks of cryptocurrencies — and what it all means for CPAs.
And the sooner you learn to navigate this strange new world, the better. The National Law Review has published a list of 10 things investors should consider before hiring a crypto CPA. Investors are being urged to look for CPAs who possess specific skillsets and knowledge about cryptocurrency — and you can bet more potential clients will be asking these questions as time goes on.
So what do investors want from you? Here’s what The National Law Review says:
- Knowledge of how the IRS treats cryptocurrencies for tax purposes.
- A broad overview of cryptocurrency taxation.
- How to use an investor’s tax basis to record crypto transactions.
- Up-to-date knowledge of the latest legislative changes related to cryptocurrencies.
- An understanding of the difference between crypto transactions that are generally ordinary income and crypto transactions that receive capital treatment.
- Knowing how, when, and under what circumstances investors would have to recognize a gain or loss when they sell their cryptocurrency for real currency.
- Mastery of comprehensive cryptocurrency software.
- Knowledge of additional reporting and disclosure obligations under federal law.
- Understanding what investors must do regarding cryptocurrencies beyond IRS tax reporting and SEC registration.
- An understanding of how federal agencies such as the SEC and IRS are going after individuals and companies engaging in crypto transactions.
Learn more at the MACPA’s Forensic Valuation Conference
Nidhi Rao, CPA, CFE, CFF, a managing director with BDO USA, will take a closer look at the intersection of cryptocurrencies and forensics as part of the MACPA’s 2022 Forensic Valuation Conference, a fully virtual event scheduled for May 13.
Business valuation, litigation support, and forensic accounting have all seen massive changes in the last few years thanks to new regulations, legislation, and technological developments. The MACPA has designed its Forensic Valuation Conference to serve the critical niche of CPAs involved or interested in these sectors.
See the complete agenda and register on the MACPA’s website.