What truly differentiates blockchain from other technology solutions is its ability to provide indisputable verification of a transaction. This valuable feature allows for the recording, execution and auditing of transactions as well as automating contracts in real time on distributed ledgers. It can be used for payments, securities issuance, contract automation and data transfers of all types.
Treatment of blockchain technology, processes and applications requires unique considerations. RSM accounting and consulting professionals apply deep industry understanding to issues including anti-money laundering, audit, data and asset custody, technology implementation, operational risk, regulation, taxation and valuation.
Digital assets represent a huge opportunity for growth and innovation in the middle market through employing new, potentially more efficient approaches to payment and settlement. Current regulatory uncertainties are preventing this potential from being realized, with a disproportionate, negative impact on middle market companies trying to navigate a complicated and quickly evolving environment. A fundamental requirement to allow for full acceptance of digital assets is to ensure that they are appropriately transparent and auditable, while not imposing undue compliance burdens that would stifle innovation and potentially drive activity to less restrictive geographies. We believe that this can be achieved through a combination of oversight and audits to help investors and entities using service organizations utilize the digital asset ecosystem.
As digital assets expand beyond financial services to gaming, media (NFTs), supply chain (CDBCs) and beyond, this will bring added complexities that must be thoughtfully addressed. The complexities of determining how a digital collectible (NFT of a sports star) or decentralized finance transaction falls under the IRS tax guidelines is challenging both middle market clients and the IRS themselves.