SEC advised ICOs to keep books

Wesley Bricker, SEC Chief Accountant advised ICOs to maintain financial records
13 September 2017   1251

The Chief Accountant of the Securities and Exchange Commission (SEC), Wesley Bricker, warned ICO companies participating of the need to maintain financial records and disclose in it all the necessary details. This is reported by CoinDesk.

This statement was made by the SEC representative during a speech at the AICPA National Conference on Banking and Savings Institutions on September 11 in Washington. In his speech, Bricker touched on various areas of finance, raising also issues of financial reporting that should be taken into account by the organizers of the ICO.

For issuers, questions included:

  • Are there liabilities requiring recognition or disclosure?
  • Are there implications for the provision for income taxes?
  • Are there previously recognized assets that require de-recognition?
  • Are there revenues or expenses requiring recognition or deferral?
  • Is there a transaction with owners, resulting in debt or equity classification and possibly compensation expense?
  • What are the necessary financial statement filing requirements?

An entity involved in initial coin or token offering activities will need to consider the necessary accounting, disclosure and reporting guidance based on the nature of its involvement.
 

Wesley Bricker
Chief Accountant, SEC

Likewise, he advised investors and token owners to ask:

  • Does specialized accounting guidance (such as for investment companies) apply to the holder’s financial statement presentation?
  • What are the characteristics of the coin or token in considering whether, how, and at what value, the transaction should affect the holder's financial statements?
  • What is the nature of the holder's involvement in considering whether the issuer's activities should be consolidated or accounted for under the equity method?

Finally, Briker noted that all these questions are typical. Only the specifics of the specific ICO will determine which reporting requirements are to be met.

Coinbase to Expand Services for Asia

Among the services available now there are Coinbase Prime, Pro and Custody
22 January 2019   119

Coinbase, the leading US cryptocurrency company reported that from now on its professional trading and custodial platforms are available to institutional clients and investors with large volumes from the Asian region.

In particular, according to the Coinbase blog, users of Asia will have access to the option of depositing accounts and withdrawing funds using SWIFT transfers through non-US bank accounts.

In the past 12 months, hundreds of crypto-first hedge funds have launched around the world, and many hundreds more traditional institutions such as proprietary trading firms, family offices and endowments have begun actively trading digital assets. Coinbase’s suite of professional products — Coinbase Prime and Pro, Coinbase Custody — serves these customers, along with other participants in the market, like asset issuers, crypto exchanges, and miners.
 

Elliott Suthers

Coinbase

Among the services available there are Coinbase Prime, Coinbase Pro and Coinbase Custody, which also supports the steamer USDC.

In December 2018, Coinbase began to provide services to residents of the islands of Guernsey and Maine, as well as Lithuania, Iceland, Andorra and Gibraltar.