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Strategies for transforming risks into opportunities

How to turn your market liability into a digital asset

The digital asset market landscape is continuously evolving, driven by technological advancement and increasing global adoption. This market is highly competitive, as organizations develop unique products to secure a significant market share. However, it faces escalating regulations from various international regulatory bodies, enforcing stringent standards to ensure fair practices and protect investors’ interests. These standards necessitate the establishment of robust control environments within organizations operating in this space.

While these requirements may present challenges, they also provide opportunities for organizations to strengthen their operational frameworks, enhance credibility, and ensure sustainable growth. Traditional compliance methodologies, when appropriately adapted to this new industry, could provide the structure and guidance necessary to navigate these complexities and continue to excel in the global digital asset market. Also, a robust attestation program, when compared to competitors, is a good way for organizations to validate their resilience to technology outages and cyber threats.

Dive into our thinking:

Strategies for transforming risks into opportunities

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How can KPMG help?

At KPMG, we support companies in evaluating services to effectively report on their digital asset processes to both internal and external stakeholders, helping ensure transparency and accountability.

We assist in preparing for American Institute of Certified Public Accountants (AICPA) System and Organization Controls (SOC) 1, 2, and 3 examinations by conducting thorough readiness assessments to identify and address potential issues. Additionally, we help companies report externally, by issuing SOC reports, which allows them to demonstrate their commitment to robust operational frameworks and regulatory compliance.

KPMG digital asset services

1

SOC readiness assessment—We assist companies in identifying suitable criteria and assessing their internal control programs against recognized AICPA attestation frameworks.

2

SOC 1—Provides an attestation in accordance with AICPA standards, focusing on financial reporting risks and controls relevant to users of the organization’s systems (ICOFR).

3

SOC 2—Delivers an attestation in accordance with AICPA standards, requiring criteria to evaluate the security of the organization’s system, with options to include evaluation criteria for system availability, processing integrity, confidentiality, and privacy.

4

SOC 2+—Offers the same SOC 2 service with the added flexibility of including additional criteria (e.g., CSF, NIST, FedRAMP, Cryptocurrency Security Standard [CCSS]) in a single report

5

Other assurance—We help you meet the requirements of various regulatory bodies. For example, we provide attestations to support stablecoin operations as required by the New York Department of Financial Services.

6

Sarbanes-Oxley (SOX) information technology (IT) readiness assessment—Provides digital asset companies valuable IT control feedback to prepare for SOX compliance, helping ensure a smooth transition and adherence to SOX requirements.

7

Real-time system assessments—Helps digital asset companies mitigate risks during technology transformations by addressing system implementation risks prior to implementation.

8

Financial statement (integrated) audits—Provides financial statement (integrated) audits to companies involved in digital assets. Companies can combine this service with our other offerings to streamline the company’s audit process.

Meet our team

Image of Bingcheng (Bing) Lin
Bingcheng (Bing) Lin
Managing Director, Technology Assurance Audit, KPMG US

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