Virtual assets, such as Bitcoin and Ethereum, have emerged as an alternative asset class. This is reflected by new products from traditional financial service providers and portfolio allocations from institutional investors. In addition to virtual assets, many enterprise applications for the underlying blockchain technology have emerged. This novel data structure has the potential to improve transparency and efficiency across many legacy systems.

The complexities associated with virtual assets and enterprise blockchain technology remain a key challenge for widespread institutional adoption. As organizations begin to grapple with this new technology, they need to account for the complex regulatory, tax, auditability, risk, and compliance implications.

KPMG has experience across the full spectrum of needs to support investors and industry players. Please click on the service offerings below for our capabilities across Audit, Tax, Consulting and Deal Advisory. 

How can KPMG help?

KPMG has experience across the full spectrum of needs to support investors and industry players






Internal and external audit

Leveraging our industry expertise and analytical capabilities, we assist clients with the application of, and compliance with, local specific statutory reporting requirements, including internal and external audits.






Capital markets services

We act as reporting accountants, performing audits of listing-related financial statements, and advising on accounting treatments and comments raised by regulators.






Accounting advisory services

We advise clients on a range of important matters that have significant accounting ramifications and help organize the financial reporting processes to ensure that accounting operations match the objectives of the business.






Attestation, incl. asset provenance and proof of reserves

Assist clients with readiness assessments, SOC Type 1 and Type 2 attestations, asset provenance and proof of reserves.






Business tax advisory services

We aim to build a long-term partnership with you and provide customized services to meet your tax needs along the journey.






International tax services

Whether you are a well-established global player or new venturer into the cross-border business realm, we can help you with global tax planning with thorough forethought and consideration.






Tax policy advisory services

We help you deal with tax disputes based on our in-depth understanding of tax policy and extensive communication channels with policymakers.






People services

We provide a full range of services to help you navigate the tax complexities when mobilizing talent across borders.






M&A tax services

We identify risks, formulate solutions and assist investors to make sound decisions to manage relevant tax risks associated with transactions.






Transfer pricing services

We provide holistic assistance to enterprises at all stages of transfer pricing strategy and compliance.






Indirect tax services

We specialize in indirect tax including VAT, Consumption Tax, Environmental Protection Tax, Resource Tax, etc.






Tax technology & transformation services (TTS)

Our tax technology tools help you digitalize your tax system and transform tax data into valuable insights.






Tax managed services

We help you develop a target operating model for your tax function to reduce costs and improve tax reporting quality.






Tax training services

Our tax learning and development center provides both offline and online training services covering a wide spectrum of tax topics across all major sectors.






Customer experience

We offer a suite of services that can help you achieve profitable, sustainable growth through customer-centric thinking. This is all about getting close to your customers and staying there.






AML, CTF, and sanctions

We help with the design and implementation of target operating models, remediation and rectification of issues, system model validation, and building a compliance culture.






Fork management and network governance

We look at the measurement and management of network performance to help ensure that the risks and costs are well communicated and controlled, with strong governance in place.






Cybersecurity, market surveillance and fraud monitoring

We help you identify cyber threats, defend cyber attacks and manage cyber incidents.






Governance, risk & compliance services

We offer an integrated framework that unifies governance, risk, compliance and assurance functions to achieve a holistic risk management vision.






Data & Analytics

We help you uncover the hidden patterns and connections from your most granular operational data and support your data-driven decision making process.






People & Change

We advise you on organizational design, talent management, employee experience, behavioural change management and workforce transformation.






Finance transformation

We provide end-to-end solutions for strategic, business and operational finance - delivered through a cross-functional financial and data driven team. We are committed to helping enterprises enhance their financial management to support operational efficiency and decision-making abilities.






Enterprise-wide transformation

We help you determine whether or not, and to what extent transformation is required and help you design and implement transformation initiatives.






Operating strategy, growth strategy and cost optimisation

We help you identify and quantify value creation potential from your operating model and achieve margin improvements.

We leverage the KPMG 9 Levers of Value framework by our Global Strategy Group to help identify and prioritize set of growth platforms that enable clients to achieve growth ambitions.






Financial, tech, operational, HR, tax, commercial, token, blockchain due diligence

Our Diligence+ framework provides you with an exponentially more powerful view of the full risks and opportunities embedded within a deal.






Valuation and modelling

We help you with valuation issues surrounding business transactions and restructuring, to meet regulatory and accounting requirements, for financing, tax planning and dispute purposes.






Fund raise

We offer hands-on assistance through the process of raising capital, from initial assessment and strategy to successful execution.






Target identification and lead advisory

We identify and prioritize acquisition targets based on their availability and your strategic needs.






Deal strategy and equity value story development

Our Elevate framework adds on to Diligence+ to fuel post-deal opportunities and drive quantifiable value.

Our insights

KPMG

Local insights

Risk management considerations related to the use of distributed ledger technology (DLT)
April 2024

Risk management considerations related to the use of distributed ledger technology (DLT)

HKMA has provided guidance for banks in Hong Kong on managing risks when adopting DLT-based solutions.

Public Consultation on Legislative Proposals to Regulate Over-the-Counter Trading of Virtual Assets
March 2024

Public Consultation on Legislative Proposals to Regulate Over-the-Counter Trading of Virtual Assets

The FTSB has proposed a new licensing regime for Hong Kong’s VA OTC services. Written feedback on the proposals is welcome on or before 12 April 2024.

Virtual Assets 2023 Review and 2024 Outlook
February 2024

Virtual Assets 2023 Review and 2024 Outlook

Round-up of the recent developments in the virtual assets space and the prospects for the year ahead

Consultation Paper on Proposed Regulatory Regime for Fiat-Referenced Stablecoin Issuers
January 2024

Consultation Paper on Proposed Regulatory Regime for Fiat-Referenced Stablecoin Issuers in Hong Kong

Hong Kong plans to introduce a licensing regime for FRS issuers in the city

Two new circulars update Hong Kong’s regulations relating to virtual assets
January 2024

Two new circulars update Hong Kong’s regulations relating to virtual assets

Circular on SFC-authorised funds with exposure to virtual assets and Joint circular on intermediaries’ virtual asset-related activities

SFC Consultation Paper on Proposed Licensing Regime for VATP Operators
November 2023

SFC outlines its expectations on tokenized products and services

KPMG summarizes the key updates included in the SFC circulars including definitions, responsibilities regarding third-parties, disclosure requirements, and clarification on how the current regulatory regimes apply to tokenized securities and investment products

SFC-HKMA Joint Circular on intermediaries’ virtual asset-related activities
November 2023

SFC-HKMA Joint Circular on intermediaries’ virtual asset-related activities

KPMG’s flyer shares the key updates of the joint circular including the distribution of VA-related products, provision of VA-related dealing and advisory services, as well as information about deadlines and notification requirements

SFC Consultation Paper on Proposed Licensing Regime for VATP Operators
March 2023

SFC Consultation Paper on Proposed Licensing Regime for VATP Operators

KPMG outlines the proposed regulatory requirements, and outlines next steps potential applicants should consider now in preparing their application for virtual asset trading platforms (“VATP”)

Virtual assets 2022 review and 2023 outlook
January 2023

Virtual assets 2022 review and 2023 outlook

Summary of the key developments of 2022 and our experts’ thoughts on the outlook for 2023

The collapse of FTX: Lessons and implications for stakeholders in the crypto industry
November 2022

The collapse of FTX: Lessons and implications for stakeholders in the crypto industry

Explores the reasons behind FTX’s rapid downfall, and looks at the implications for regulators, operators, users and investors across the virtual assets space

Introduction of the Crypto-Asset Reporting Framework and the proposed amendments to the Common Reporting Standard
November 2022

Introduction of the Crypto-Asset Reporting Framework and the proposed amendments to the Common Reporting Standard

Explores the reasons behind FTX’s rapid downfall, and looks at the implications for regulators, operators, users and investors across the virtual assets space

Investing in Digital Assets – Family office and high-net worth investor perspectives on digital asset allocation
October 2022

Investing in Digital Assets – Family office and high-net worth investor perspectives on digital asset allocation

Jointly authored by KPMG China and Aspen Digital, shares investment strategies in the digital assets sector, based on a survey of family offices and HNWIs, and in-depth interviews with key industry stakeholders

Virtual Asset Service Providers: Hong Kong formalises regime
August 2022

Virtual Asset Service Providers: Hong Kong formalises regime

KPMG outlines the regulatory agenda and highlights the impact on Virtual Asset Services Providers (VASPs) as HKSAR gazetted the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022

Crypto Insights Part 2: Decentralised Exchanges &
Automated Market Makers – Innovations, Challenges & Prospects
October 2021

Crypto Insights Part 2: Decentralised Exchanges & Automated Market Makers – Innovations, Challenges & Prospects

In this instalment on DEXs, KPMG discusses the competitive landscape, the AMM innovation and mechanics, advantages and challenges of AMMs, and the future of DEXs.

Crypto Insights Part 1: An Introduction to Decentralised Finance (DeFi)
October 2021

Crypto Insights Part 1: An Introduction to Decentralised Finance (DeFi)

Pulls together KPMG’s in-market insights from working with regulators, financial investors, and the crypto industry, and sets out the background to DeFi and key factors which we believe will impact its evolution.

KPMG & Ethereum Co-founder

KPMG’s series of discussions on blockchain applications with Vitalik Buterin, co-founder of Ethereum. 

Key definitions

In short, a blockchain is a series of transactions that are grouped into blocks and recorded on a distributed, digital ledger. These blocks are connected through encryption which stores the data securely and prevents anyone from changing the history. This is, in part because there is no individual owner. 

Blockchain is also known as Distributed Ledger Technology (DLT) – a digital system for recording transactions of assets that uses cryptography to store information securely and immutably in multiple places simultaneously. DLT underpins all assets in the crypto-universe, including crypto-assets, stable coins and central bank digital currencies (CBDCs).

Cryptocurrency refers to digital or virtual currencies that utilise cryptography for securing transactions, controlling the creation of new units, and verifying the transfer of assets. These digital currencies operate independently of central banks or governments and rely on decentralised technology, typically based on blockchains or distributed ledger technology (DLT). By leveraging cryptography and decentralised networks, cryptocurrencies can offer secure and transparent transactions, fostering financial autonomy and innovation in a rapidly evolving digital landscape.

Web 1.0, often referred to as the first generation of the internet, was static and primarily only allowed users to read informational content (read only). Web 2.0 shifted towards user participation and evolved to be more dynamic, allowing users to create content interactively (read, write). With the emergence of Web 3.0 comes the next generation of internet – an evolving phase characterised by decentralised technologies, blockchain, AI, and machine learning, creating a more private and secure environment and empowering users with greater control over their data, facilitating peer-to-peer transactions and allowing digital ownership (read, write, own).

Matthew Ball summed it up nicely: “A massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments” - The Metaverse: And How It Will Revolutionize Everything.

It will be accessed and experienced through augmented, virtual, or mixed (collectively “extended”) reality, and will significantly broaden the number of virtual experiences seen in everyday life for the average user.