Amidst increased regulatory pressure, Ernst and Young (EY) pilots a new product designed for auditing digital currency transactions.
The EY Blockchain Analyzer is capable of auditing Bitcoin, Ether, Bitcoin Cash, Litecoin and crypto assets managed or traded by exchanges and asset management firms, the company said in a statement.
Paul Brody, EY Global Innovation Blockchain Leader, says:
"Understanding exchanges and cryptocurrencies is the first step in our ability to develop tools to test various blockchain-based business contracts.”
The EY Blockchain Analyzer can gather a company’s transaction data from multiple blockchain ledgers and perform an analysis reconciling and identifying transaction outliers, the company says.
Paul Brody added:
“These technologies lay the foundation for automated audit tests of blockchain assets, liabilities, equities and smart contracts. EY Blockchain Analyzer will be utilized by the auditor to analyze transactions on a blockchain and help provide insight to the finance function."
The product was developed by using the expertise gained from EY’s global clients in the US, Europe, and Japan including investment funds, exchange platforms, cryptocurrency mining companies and wallet providers.
Jeanne Boillet, EY Global Assurance Innovation Leader, says:
"As digital technology continues to advance, we are focused on developing innovative approaches to the audit process and providing confidence and trust to the capital markets.”
The next phase of the project is to scale the technology and develop customized regulatory compliance and reporting nodes, the company said.