Big Four accounting firm KPMG says that investors are warming up to crypto as a way to hedge against the debasement of fiat currencies by central banks. In a new report, KPMG looks at the Canadian market and says that in 2023, half of financial service providers polled in the country offered crypto asset services, […]
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Crypto investors in Germany, Austria and Switzerland are devoting large portions of their overall portfolios to digital assets, according to a new study conducted by Big Four accounting firm KPMG. KPMG partnered with the German-language crypto media platform BTC-ECHO to poll 2,400 private digital asset investors across those three European countries, which are collectively known […]
The post Investors in Three Central European Countries Show Optimism and Confidence in Crypto, According to KPMG Study appeared first on The Daily Hodl.
As the metaverse loses its appeal to some global tech leaders, MetaMinds Group CEO Sandra Helou argues that failures in metaverse initiatives resulted from a lack of proper business models.
The metaverse may no longer have mainstream appeal to some global tech leaders compared to two years ago. However, weaknesses in the testing of the various investments and initiatives in the emerging technology may have resulted in some of them failing.
On the sidelines of the recent Cardano Summit in Dubai, Sandra Helou, CEO of MetaMinds Group, told Cointelegraph that the lack of tailor-fit business models for enterprises “have been the biggest failure in the metaverse,” and turning to them for short-term wins is not the right approach. She said:
“When it comes to applying technology similar to the metaverse, that in itself requires a massive overhaul and shift in the business vision, teams and business models… The biggest thing that we’re seeing is that people did not get their business model right, which is why a lot of them failed.”
Helou’s comments come after KPMG recently released a report that found only 29% of tech leaders in the United Arab Emirates and 37% globally believe that the metaverse will play a crucial role in helping their businesses achieve short-term success. According to the survey, most tech leaders are leaning toward artificial intelligence (AI) instead over the next three years.
“The metaverse is not for short-term goals. It’s definitely a long-term vision that requires a lot of effort, a lot of strategy, teams dedicated to it and funding,” the executive added.
Earlier this year, Business Insider published a report titled “RIP metaverse, we hardly knew ye.” The article, written by EZPR CEO Ed Zitron, claimed that the “once-buzzy technology” had “died after being abandoned by the business world.”
The narrative, however, did not faze builders in the space, who mostly remained optimistic about the technology’s potential to create new user experiences.
When asked about how companies can ensure the longevity and relevance of metaverse projects, Helou said the industry should address accessibility and interoperability:
“The space is pretty fragmented… Like a segment that if you want to use Roblox, you have your own avatar, you have your own identity. Then, if you want to move to another area, you have a [different] avatar and identity. It’s very difficult.”
“It’s kind of like every time you enter a store, you’d need to change your physical wallet and clothes you’re wearing. It just doesn’t make sense,” Helou explained.
The executive explained that builders should ensure metaverse product lines are aligned with what the users, their clients and the market need, including the proper blockchain network, assets to use and understanding the safety and security behind digital identities. She added:
“We truly believe that once you get that right, you’ll be able to make an interoperable world where everyone can freely move around.”
Dubai and the wider UAE have been working to attract global crypto firms with their crypto-friendly policies. According to Helou, the jurisdiction’s approach toward emerging technologies has made it easier for builders to realize their vision:
“Technology is universal… But if you look at the rules and regulations and the ease of commerce that Dubai has given the founders, CEOs and builders, it does put it in a prime position for the metaverse to be extremely successful for people who do lift off from the region.”
Helou believes that the UAE, in general, will not take a similar approach to what the United States Securities and Exchange Commission employs toward the sector, which the community has described as “regulation by enforcement.”
With the establishment of Dubai’s Virtual Assets Regulatory Authority, which pushes forward those necessary policies, the executive said the regulator hasn’t come down to Web3 projects to micromanage the industry.
One of the world’s largest accounting firms just published a new report highlighting use cases for Bitcoin (BTC). According to the Big Four accounting firm KPMG, the flagship cryptocurrency consistently provides value despite being an often-misunderstood technology and asset class. “There’s a variety of impactful use cases that Bitcoin offers that have a track record […]
The post Big Four Accounting Firm KPMG Touts Bitcoin Benefits, Including Payments, Social Causes and Financial Inclusion appeared first on The Daily Hodl.
Between 2019 and 2022, the value of foreign capital that flowed into Nigeria dropped from $23.9 billion to $5.32 billion. The drop has been attributed to low investor confidence, the high cost of doing business, as well as the country’s high inflation rate. Nigeria will “struggle to keep the naira to the dollar exchange rate […]
Ripio, an Argentina-based cryptocurrency exchange, has announced that it will expand its operations to the U.S. The company, which serves more than 4.5 million customers in Latam, received a license in the state of Florida to operate and will start offering its Ripio Select services to companies and institutional investors. Ripio Expands Operations to US […]
KPMG, one of the “big four” companies in the consulting and auditing business, is appointing a new head of metaverse futures. The new position, to be occupied by Alyse Sue, will be dedicated to the implementation of technologies such as metaverse and crypto to find fresh business models for the company, as other big four […]
Another step has been taken on the path to use fair-value accounting for the reporting of crypto assets in the United States.
The United States Financial Accounting Standards Board (FASB)’s decision to allow companies to use “fair value” to account for their crypto holdings could be seen as another step toward the wider institutional adoption of cryptocurrency.
During a meeting on Oct. 12, the FASB board made the decision to require entities to measure crypto assets at “fair value.”
The board’s decision is “tentative” at this stage, and could be changed at future board meetings when they continue to weigh their options.
The decision, if approved, will allow companies to update their balance sheets regularly with the fair value of crypto assets rather than referring to digital assets such as Bitcoin (BTC) as “intangible assets,” where companies were required to measure assets at their lowest price during a reporting period.
The previous treatment of digital assets resulted in large impairment losses on balance sheets even if their positions were currently in the green, with firms being unable to regularly update the value of their holdings if the value were to increase.
Anthony Tuths, principal of KPMG's Alternative Investment Tax practice said the guidance could be bullish for broader mainstream crypto adoption, adding it is likely to go into effect in 2023.
“FASB has just cleared the way for new accounting guidance which will allow most cryptocurrencies to be accounted for at fair value. When this guidance goes into effect (likely in 2023) it will greatly help smooth the way for broader mainstream adoption.”
Tuths added that not all digital assets would qualify for the new accounting treatment however, with NFTs, asset backed tokens, and similar tokens still subject to the previous guidelines.
Crypto tax firm CoinLedger’s director of strategy Miles Brooks said the new FASB decision is “long overdue.”
The U.S. standard-setter had declined to consider new accounting rules for crypto until May. 11, when board members decided to add the project to its technical agenda after an increase in market capitalization of crypto assets made the matter more urgent.
Brooks continued to say the new FASB standards will allow companies to more accurately report their current crypto holdings within their financial statements.
Related: Colorado is accepting crypto for tax payments — it could be a mess or a shining example
Companies and investors have been seeking clarity on the accounting standards for crypto for years, for example the California Society of Certified Public Accountants (CalCPA) urged the FASB to treat crypto more like foreign currency all the way back in 2019.
The long-term objective for the company is to examine other potential metaverse use cases such as health care, consumer, retail, media and financial services.
KPMG, one of the Big Four accounting firms in Canada and the United States, has revealed the opening of its first metaverse collaboration hub to help its employees and clients pursue growth opportunities in the digital era.
KPMG is entering the metaverse with a new collaboration hub that will connect employees, clients, and others with Web3. The company is making a collective $30 million investment this year in Web3 experiences, with the metaverse hub as the "signature piece."
According to a Tuesday report by Fortune, the hub will be focused on education, collaboration, training, events and workshops with Cliff Justice, KPMG U.S. leader of enterprise innovation claiming that it is presently being utilized for such things but that KPMG intends to hire people to build it and expand it over time.
The long-term objective for the company is to examine other potential metaverse use cases such as health care, consumer, retail, media and financial services.
Global spending in the #metaverse could reach $5 trillion by 2030❗
— THE RELEVANCE HOUSE. (@RelevanceHouse) June 28, 2022
#eCommerce and #VirtualAdvertising are expected to be the main source of income in the space.
What do you think❓
Read the full @McKinsey report on @Cointelegraph https://t.co/zrakjjxoja pic.twitter.com/yfwDFHyAkw
Laura Newinski, deputy chair and chief operating officer at KPMG in the U.S., said:
"The metaverse is a market opportunity, a way to re-engage talent, and a path to connect people across the globe through a new collaborative experience."
The companies will continue to explore possibilities in the crypto and Web 3.0 space, co-create new tools and solutions that provide critical insights, launch immersive learning and development platforms, recruit talent to contribute knowledge and help navigate the changing confluence of the physical and digital worlds, among other things, as part of its innovation strategy.
Related: Yahoo launching Metaverse events for Hong Kong residents under restrictions
The COVID-19 epidemic sparked people's interest in the metaverse. There has been an increase in the desire for methods to make internet contact more lifelike as more individuals work and go to school online. JPMorgan, one of the biggest banks in the United States, made headlines earlier this year by publishing a paper suggesting metaverse technology was a "one trillion-dollar opportunity," along with establishing its own virtual headquarters in the Decentraland (MANA) metaverse.
Despite the bear market in Bitcoin and altcoins, the industry's builders continue to build for a brighter future.
For all the gloom and doom in the cryptocurrency market these days, our industry continues to make inroads into mainstream tech. This week, I had the pleasure of attending the sold-out Collision Conference in Toronto, and crypto was featured prominently. During the event, I got to moderate three panels, including two that were crypto-focused. The fact that the biggest tech conference in North America is letting me talk cryptocurrency after a six-month bloodbath proves there’s more to the industry than just price. And, I’m not saying the price isn’t important — but context is everything.
This week’s Crypto Biz gives you a taste of Collision Conference 2022 and also draws your attention to the latest funding and business news from the world of blockchain.
During Collision, I sat down with KPMG Canada’s crypto team to talk about the firm’s recent foray into digital assets. If you recall, I got really excited in February when the KPMG Canada announced it had added Bitcoin (BTC) and Ether (ETH) to its corporate treasury. The firm’s decision to adopt digital assets didn’t come on a whim — it was directed by an internal governance council that did its due diligence before recommending crypto treasuries. The Canadian arm of the Big Four accounting firm remains bullish despite recent market turmoil.
I reported last week that crypto-focused hedge fund Three Arrows Capital (3AC) was inching closer to insolvency after a series of leveraged bets turned sour. We knew there would be contagion risk — we just didn’t know how much. Well, this week, trading platform Voyager Digital took out a loan from Alamada Research to cover losses tied to its exposure to 3AC. Specifically, Voyager borrowed 15,000 BTC from Alameda, which is roughly equivalent to the 15,250 BTC owed to it by 3AC. Voyager has requested that 3AC repay its outstanding debts by Monday, or else it’ll pursue legal action.
Crypto has gifted us with a lot of nasty headlines over the past six months. But, during that time, billions of dollars in venture capital were pouring into the industry. This week, crypto brokerage FalconX announced it had raised $150 million at a valuation of $8 billion in a Series D round that was led by Singapore sovereign wealth fund GIC. The company’s valuation has basically doubled from August when it concluded its Series C funding round. As is always the case, when everyone seems to be panicking, smart money investors are busy accumulating.
Zuckerberg’s Meta, which is the parent company of Facebook and Instagram, announced that it’ll begin testing nonfungible tokens (NFTs) on Instagram Stories using Spark AR Studio. “We’re expanding our test so more creators around the world can display their NFTs on Instagram,” the CEO said. “Creators and collectors will be able to share their digital collectibles across Facebook and Instagram after we begin rolling out the feature on Facebook with select US creators at a later date.” Social media is about to undergo a major transformation. We’ll see whether Zuckerberg’s company will maintain its dominance during the transition to Web3 and the Metaverse.
I wasn’t able to attend this week’s Market Report, but my colleagues Benton Yuan, Marcel Pechman and Yashu Gola were able to carry on without me. In addition to giving you the latest trading insights, they discussed Bitcoin’s prospects in the event of a global recession. You can watch the full replay below.
Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.
