EY acquires new cryptocurrency technology

Acquisition led by EY Americas Tax Innovation Foundry reinforces the organization's commitment to blockchain innovation and positions it as a leader in cryptocurrency accounting and tax

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Jul 19, 2018, 09:00 ET

NEW YORK, July 19, 2018 /PRNewswire/ -- Ernst & Young LLP announced today its acquisition of certain technology assets and related patents from Elevated Consciousness, Inc., a San Francisco, CA-based startup focused on developing unique solutions for the crypto-asset ecosystem. The Andy Crypto-Asset Accounting and Tax ("CAAT") tool methodically connects with multiple cryptocurrency exchanges and wallets, allowing for better visibility into cryptocurrency transactions and inventory.

The acquisition is part of EY strategy to expand blockchain-related capabilities and services worldwide.

"Cryptocurrencies and blockchain are transformational forces with a strong potential to fundamentally change the way business is done," said Kate Barton, EY Global Vice Chair – Tax Services. "CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment."

This acquisition demonstrates the growing momentum in ventures sourced by the EY Americas Tax Innovation Foundry, a group charged with building new businesses that allow EY member firms in the Americas to continue to provide innovative new digital solutions to clients.

"This acquisition is another element in building out a portfolio of blockchain and cryptocurrency solutions across our businesses," said Paul Brody, EY Global Innovation Leader, Blockchain. "Tax strategy, planning, and execution will be a key part of everything we build across our solutions, from supply chain management to software licensing solutions. We plan to integrate the CAAT tool into our Blockchain Analyzer portfolio to develop one of the industry's broadest sets of technology and process services in tax and assurance."

The CAAT tool was developed by a team of entrepreneurs led by CEO, VJ Anma, a Silicon Valley entrepreneur who developed the platform based on his experience as a cryptocurrency fund manager, combining innovative technology with the rigor to meet ever-changing requirements accurately.

"For the Foundry, this marks an important milestone in our exciting journey to launch new digital businesses that drive transformation and growth for EY member firms and create new unique value for EY clients. The Foundry's portfolio of digital businesses continues to grow as we demonstrate success in our venturing efforts," said Chirag Patel, leader of the Foundry. "Thanks to VJ's ingenuity, I look forward to all the opportunities in tax and accounting that this technology will afford our clients and professionals in such a dynamic and exciting market."

"We continue to see an increase in consensus among the asset management community that crypto-assets are a viable asset class from an investment standpoint," said Michael Meisler, Ernst & Young LLP Tax partner and Tax Blockchain leader. "The uncertainty in applying existing guidance related to the timing, character and source of income generated in connection with trading and investing in crypto-assets requires the use of flexible solutions. By allowing taxpayers to model different potential outcomes, they are better able to assess their risk related to reporting taxable income for this new asset class. Technologies such as CAAT can help EY member firms and their clients effectively navigate this analysis. CAAT will allow us to help clients investing in crypto-assets, both in the fund space and beyond."

"Numerous firms are interested in technology around cryptocurrencies like CAAT, but the unparalleled entrepreneurial know-how and experience that the Foundry offers is what attracted us to the EY organization," said Anma. "The organization is positioned to be a leader in the blockchain and crypto-asset space. My team and I are excited to support EY as the technology is taken to the next level."

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This news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.

SOURCE EY