8 ways crypto companies can improve their financial compliance in the US
The U.S. presents many obstacles to crypto companies, with a multiplicity of federal and state regulatory agencies having real or potential jurisdiction over the industry. Its unique political environment has contributed to more governmental skepticism toward crypto than is seen in other countries, and high-profile punitive actions by the Securities and Exchange Commission are making many crypto companies nervous about maintaining a foothold in the U.S.
Despite all this, there is also high-profile support for crypto in the U.S., so many crypto companies will be unwilling to abandon or postpone entry to the U.S. market. While there may not be a single set of clear, comprehensive guidelines for crypto companies in the U.S., there are smart strategies that can help them stay on the right side of regulators. Below, eight members of Cointelegraph Innovation Circle share tips to help crypto companies improve their accounting procedures and compliance standing in the U.S.
The obvious answer is to use private blockchains. The entire purpose of blockchain is to enhance the ability to do credible accounting at scale. Permissioned access preserves privacy while lowering the cost of delivering provably raw data for accounting. Those proofs, rather than the data itself, can be sent for compliance to a blockchain shared with regulators. – Stephanie So, Geeq
After the U.S. stablecoin, Binance and Coinbase crackdowns, I think it’s clear the current U.S. administration and the SEC are on a crypto witch hunt. Companies based in the United States may be targeted by regulators even if they believe they are fully compliant. Because of this, maintaining precise records of customer funds and money movements has never been more crucial. – Sheraz
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