Don’t be intimidated by crypto and digital assets

Crypto and digital assets can seem disorienting. But they don’t have to be. 

The novelty of crypto assets, non-fungible tokens (NFTs), and other types of digital assets can make this market perplexing. Newcomers might not have any idea where or how to begin.  

Keeping up with consumer demands and a rapidly changing regulatory environment can also feel overwhelming. How do you make sense of it all? 

Survey the crypto and digital asset landscape  

Get the lay of the land as you begin your journey. 

Crypto and digital assets can vary in terms of structure, category, and technology ecosystem. Here are a few quick definitions of frequently used terms in this space to help you understand some of these differences.  

Blockchain technology

A shared ledger technology that documents a list of encrypted records (“blocks”) that are linked using cryptography in the proper sequence. 

Central bank digital currency

A digital equivalent of a currency issued by a central bank. 

Crypto asset

A subset of digital asset used as a store of value or limited medium of exchange. Crypto assets are denominated solely in digital form and are not dependent on any central authority for supply and maintenance. Though they’re often referred to as “cryptocurrency,” crypto assets are not a currency.  

Security token

A financial security that is expressed as a digital token that is distributed and traded via blockchain. 
A shared ledger technology that documents a list of encrypted records (“blocks”) that are linked using cryptography in the proper sequence. 
A digital equivalent of a currency issued by a central bank. 
A subset of digital asset used as a store of value or limited medium of exchange. Crypto assets are denominated solely in digital form and are not dependent on any central authority for supply and maintenance. Though they’re often referred to as “cryptocurrency,” crypto assets are not a currency.  
A financial security that is expressed as a digital token that is distributed and traded via blockchain. 

Non-fungible token (NFT)

Units of data on a blockchain representing full or shared ownership and control of usage rights correlating to an exclusive digital asset, which are generated via smart contracts. 

Stablecoin

A digital asset with mechanisms designed to minimize price volatility. Its unit value is often tied to an external source – typically either a national currency such as the U.S. dollar or euro, or a commodity. 

Tokens

Also commonly referred to as “coins,” these are units of digital assets developed by blockchain-based networks and organizations. 
Units of data on a blockchain representing full or shared ownership and control of usage rights correlating to an exclusive digital asset, which are generated via smart contracts. 
A digital asset with mechanisms designed to minimize price volatility. Its unit value is often tied to an external source – typically either a national currency such as the U.S. dollar or euro, or a commodity. 
Also commonly referred to as “coins,” these are units of digital assets developed by blockchain-based networks and organizations. 

Stay up to speed on the twists and turns 

Don’t get left behind on future opportunities with crypto and digital assets. 

The crypto and digital asset landscape changes quickly, and what’s true today might not be tomorrow.  

We monitor this market closely and can keep you up to speed on the changes. Our specialists can help you navigate the complexity and consult on the best path forward. 

What are your crypto and digital asset needs? 
Schedule a time to talk with our specialists about how we can help. 

Ways we can help

We can help you map out your crypto and digital asset challenges and opportunities.  

Tax services

Tax services

Tax consulting
Integrate crypto and digital assets into your day-to-day business while implementing relevant accounting methods and meeting federal and SALT tax obligations.
Tax consulting
Tax structure advisory 
Advise on and model tax-efficient structures for crypto and digital asset startups and native companies.
Tax structure advisory 
Tax compliance
Analyze your crypto and digital asset transactions to advise on whether they comply with tax reporting and income recognition requirements.
Tax compliance
Tax accounting
Understand what drives effective tax rates in crypto and digital assets and improve financial statement accuracy.
Tax accounting
Information reporting
Adjust to changing reporting requirements of crypto and digital assets and better understand the information you need from consumers.
Information reporting

Consulting services

Consulting services

Financial crime
Manage crypto and digital asset anti-money laundering, sanctions, and fraud risks; properly identify involved parties; and spot potential money laundering with less disruption to operations.
Financial crime
Internal audit
Assess and understand the viability of your operational, regulatory, and IT controls as they relate to crypto and digital assets.
Internal audit
Consumer regulatory & compliance services
Understand how the use of crypto and digital assets affects your organization’s regulatory environment and requirements.
Consumer regulatory & compliance services
Data governance
Understand how to obtain and validate data about customers, counterparties, and other parties involved in your organization's crypto and digital asset activities.
Data governance
Enterprise risk management (ERM)
Keep your ERM framework evolving to meet the challenges of rising third-party risk and changing crypto and digital asset regulations.
Enterprise risk management (ERM)
Model risk management (MRM)
Prepare to adjust the design and capabilities of your MRM in response to possible regulatory changes on the use of crypto and digital assets.
Model risk management (MRM)

Accounting advisory services

Accounting advisory services

Accounting standards
Identify and advise on the right accounting standards and reporting requirements for digital asset transactions you’re considering. 
Accounting standards
Strategic transactions
Capitalize on our experience to navigate a crypto-related acquisition, launch a new digital asset offering, or direct other key activities in this space.
Strategic transactions
Finance transformation
Untangle accounting complexity and lay the foundation for transformation in enterprise resource planning and bookkeeping to support crypto and digital asset efforts.
Finance transformation

Audit & assurance services

Audit & assurance services

Audit services
Access high-quality financial statement audits for companies in the digital asset ecosystem. 
Audit services
SOC 1 & 2 attestation reporting
Provide assurance to customers and stakeholders on your digital assets services and systems from SOC specialists who understand the unique risks and processes.
SOC 1 & 2 attestation reporting
SOC 1 & 2 readiness assessment and advisory
Accelerate your SOC attestation reporting with readiness assessments that can identify issues within your control environment and allow for remediation prior to examination.
SOC 1 & 2 readiness assessment and advisory

Crowe can cut through the confusion about crypto and digital assets.

We want to simplify and clarify crypto and digital assets for you. 

Our extensive accounting, tax, audit, and consulting experience and expertise can be applied to crypto and digital assets. 

Additionally, our specialists are represented on the AICPA working group, which is developing guidance on how to account for and audit digital assets under U.S. generally accepted accounting principles (GAAP) for nongovernmental entities and generally accepted auditing standards (GAAS), respectively.  

Let’s talk about the next steps in your crypto and digital asset journey.