Blockchain
Coinbase Under Scrutiny for Crypto Asset Accounting Practices
Examining Coinbase’s Approach to Crypto Asset Accountability
Coinbase, a leading cryptocurrency exchange, is currently facing scrutiny over its accounting practices for crypto assets. This situation stems from the company’s early adoption of a new rule by the Financial Accounting Standards Board (FASB), which alters the accounting and disclosure for crypto assets to a fair-value model from a cost-less-impairment model.
Coinbase’s situation highlights the broader challenges and considerations that come with the financial reporting of crypto assets. As regulatory bodies continue to evolve their standards, companies like Coinbase must navigate these changes while maintaining transparency and compliance.
Crux of the Matter
Coinbase’s decision to adopt a new accounting rule by the Financial Accounting Standards Board (FASB) ahead of its 2025 effective date has sparked a debate. The rule allows companies to report crypto assets at fair value rather than at cost-less impairment. This shift aims to provide a more accurate reflection of the asset’s current market value, a significant change given the volatile nature of cryptocurrencies.
Controversy
The controversy arises from Coinbase’s approach to adjusting its earnings before interest, taxes, depreciation, and amortization (EBITDA) to exclude crypto impairment costs. Some accounting experts argue that this creates an individually tailored metric that may not align with Generally Accepted Accounting Principles (GAAP).
Regulatory Implications
Coinbase’s accounting practices could lead to regulatory enforcement action. The Securities and Exchange Commission (SEC) mandates that GAAP-compliant metrics must be given precedence, with non-GAAP measures requiring equal prominence and clear reconciliation. Coinbase’s adjustments have raised concerns about whether these requirements are being met.
Market Reactions and Investor Sentiments
The market has reacted cautiously to these developments, with investors closely monitoring the situation. Coinbase’s actions reflect a broader trend among companies holding crypto assets to seek accounting models that better represent the dynamic nature of their holdings.
Conclusion: Navigating Uncharted Waters
As Coinbase continues to push the boundaries of digital finance, it finds itself at the intersection of innovation and regulation. The scrutiny of Coinbase revolves around its crypto asset accounting practices, which are under scrutiny for compliance and transparency in the digital finance sector. The company’s proactive stance on adopting new accounting standards demonstrates its commitment to transparency and investor interests. However, it also highlights the challenges that come with being a trailblazer in an industry where the regulatory framework is still taking shape.
Coinbase’s journey is emblematic of the broader crypto industry’s growing pains as it seeks legitimacy and stability in the financial world. The outcome of this scrutiny will not only affect Coinbase but also set a precedent for how crypto assets are accounted for and reported in the future.
Source: sfctoday.com
The post Coinbase Under Scrutiny for Crypto Asset Accounting Practices appeared first on HIPTHER Alerts.
Blockchain
UNICC and ShelterZoom Developed a Secure Document Tracking and E-Signature Solution for the UN System
The United Nations International Computing Center (UNICC) and ShelterZoom are pleased to announce a new innovative blockchain-based solution for controlling and protecting the digital data of UN entities and other international organizations. As the largest strategic partner for digital solutions and cybersecurity within the UN system, UNICC has partnered with ShelterZoom, a leading data and content protection and ownership SaaS company behind innovations such as Document Token® technology and Document GPS®.
Building upon the 50 years of experienced innovation from the UNICC, the two organizations collaborated on a transformational undertaking offering robust protection and promising increased productivity for document tracking and management. ShelterZoom will contribute its proprietary document tokenization technology, along with its data protection, document tracking and e-signature solutions to deliver a white-labeled platform, giving member organizations a greater level of governance over their content. Using ShelterZoom’s flagship proprietary Single Source Of Truth® technology, the solution provides a means for each file to be protected individually without changing user normal habits instead of having to rely solely on protecting files at the database level. This ‘singularity and control’ is a new era in cybersecurity and document management, which has never been seen before at this level of seamless integration with existing tools.
“The synergy between what we deliver and the goals of the United Nations are a perfect match for Single Source Of Truth,” said Chao Cheng-Shorland, CEO and Cofounder of ShelterZoom. “We have said from the beginning that it is time to think about cybersecurity in a completely new way and in doing so we have created a solution to address other operational pain points while simultaneously solving one of the biggest challenges facing the global population today. The UN is at the frontlines of changing the world for the better and its forward-thinking approach to using technology to address fundamental issues is critical in improving livelihoods for all.”
ShelterZoom solutions have already been in use across dozens of industries and with this new commercial partnership, they can now extend their usefulness to the UN family and other international organizations. The revolutionary method for complete document tracking with built-in productivity tools, such as digital signatures and a market-first method for organizing files inside email, is an all-in-one solution built for a global workforce. The Single Source of Truth model has the added benefit of decreasing the carbon footprint created by excessive digital waste, further supporting the sustainability goals of the United Nations.
“The need for robust cybersecurity and data protection has never been greater,” said Sameer Chauhan, Director of UNICC. “By working together with ShelterZoom, we have developed a cutting-edge tool tailored to the needs of the UN family. Our unwavering commitment to providing best-in-class solutions ensures we continue to support the digital transformation and modernization of the UN system and other international organizations.”
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Blockchain
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