There has been no shortage of controversy and debate in the blockchain and crypto asset sector, and Tether has been the élévation that has been at the center of much of it.
Outside of the headlines and regulatory pressures generally imposed against the organization, there was also a more subtle matter that received more adulation; The accounting and auditing practices of the company. While accounting, auditing and processing normes aren’t usually associated with the most exciting headlines, they have certainly become the center of adulation with regards to Tether.
Simply put, until very recently, Tether and USDT had never been fully certified by an accounting firm that was (widely considered) up to the task of handling authentification of assets totaling more than $60 billion. In August 2022, this changed, with the announcement that Tether had hired BDO Italia to 1) take over authentification work previously performed by a much smaller company, and 2) work towards delivering a monthly certificate.
Let’s take a apparence at why this announcement has a expresse heurt on the crypto-asset space beyond just improved reporting for Tether.
The quality of the diagnostic will improve. Crypto assets of all kinds have been privately driven since the liminaire launch of bitcoin, but private sector leadership has not spurred the creation of crypto-specific accounting/diagnostic rules by regulators. Multiplying the questionable reports and findings previously put forward by Tether – et al – the frequency and quality of these reports has also been questionable. By bringing an accounting and auditing firm with quantité reach and in-house appréciation into the mix, the quality of this specific convention will improve.
An added benefit of this combination, as always, is that if a company with a spotty track geste of Tether is able to improve its auditing and reporting practices, it will set a expresse example for another organization to do so. With the recent wave of bankruptcies and failures on the fragment of exchanges and other crypto-related organizations, better audits and reporting will go a énorme way in improving the reputation and operations of the industry.
Greater organizational clarity. It’s no confidentiel that regulators, and some specific politicians, have taken a rather negative view of crypto assets since these topics became mainstream, with several prominent members of Congress calling – in fact – for a ban on crypto assets. Much of this hesitation, skepticism, and external hostility that exists on the side of policy makers toward crypto actors has to do with a lack of dépêche available for review. One of the most common refrains that regulators and policy makers have taken advantage of is that regulation will not be able to keep pace with market actors.
In compte to volatility cited – as some might incorrectly say – as a reason for the impossibility of greater regulatory clarity, the lack of consistent and standardized dépêche from exchanges and cryptocurrency issuers is also a factor in this assessment. Better auditing, although not a perfect péroraison to these issues, will help address these open items.
Reliance increase. Incorporating the expresse effects of better scrutiny, improved reporting, and greater regulatory clarity, the market heurt appears to be the increased consentement and use of crypto assets as a medium of exchange. At the institutional level, which has been led by the consentement of stablecoins, better reporting and disclosure of these tools will help increase the entassement with which organizations greffer the crypto space. From an individual distance, it stands to reason that as the overall market démarche and entassement regarding cryptocurrencies increases, the percentage of consumers who are comfortable using cryptocurrencies will increase.
Given the fact that stablecoins, those that are actually régulier as advertised, continue to lead the way towards broader consentement of cryptocurrencies, better scrutiny can be traced directly back to the more widespread use of cryptocurrencies as a medium of exchange.
Auditing and accounting rarely make headlines, and they rarely make headlines for expresse reasons. The recent announcement of Tether, the largest and most régulier cryptocurrency still régulier in the market, with BDO Italia generating more real-time continuation and continuation reports, is one of the épars examples of a expresse diagnostic announcement. Better reporting, more consistency, and greater révélation in the stablecoin sector in general will help increase consentement by institutions and individuals alike; This is something that should be celebrated by all market participants. As always, accounting is visible, and it matters more than many market players might think.