A challenge that accountants, auditors, and fund administrators in the crypto industry have faced is importing, indexing and categorising crypto transactions into their current accounting system. Cryptio, a crypto accounting software provider, has come up with a solution that will help clarify these issues as regulatory pressure increases, by enabling businesses to merge complex on-chain activity with their general ledger.
The solution has been named Ionic, and will bridge the technical gap between on-chain activity and existing accounting systems like Xero and Quickbooks. It solves essential back-office problems, including:
- Creating one ledger of truth: Importing transaction data from institutional custody, exchanges, OTC desks, on-chain wallets, smart contracts, DeFi, CeFi and more.
- Crypto-to-fiat valuation: Prices sourced directly from exchanges, at the exact time of the transaction, partnered with leading data provider – Kaiko.
- Categorise and resolve transactions: Automated rule based contact and smart contract ID, transaction labelling, cost basis (FIFO and WAC), unrealised gains and loss reporting.
- Chart of accounts mapping and sync: One click integrations with Xero and Quickbooks – automatically mapping the Chart of Accounts with crypto activity.
The Ionic update marks a huge technical innovation in indexing and processing on-chain data. The key to this has been Cryptio’s direct relationships with the Layer 1 blockchain foundations. Thousands of applications are being built on top these foundational blockchains, especially in the DeFi and NFT space, and Cryptio is building the back-office infrastructure in tandem with this growing ecosystem.
Crypto-native businesses such as Consensys, Aave and Nexo have adopted the platform to streamline their back-office operations and meet their accounting obligations. Cryptio is also building a community of accounting partners using the Ionic software, including international audit, tax and advisory firm, Mazars.
Antoine Scalia, CEO of Cryptio, commented on the launch: “Crypto-native businesses, hedge funds, family offices, and company treasuries now face sophisticated accounting, audit and compliance challenges as a result of increasing regulatory demands for accountability and auditable records on their crypto activity. Proposed amendments as part of the US Infrastructure bill to US tax code section 6050I is evidence of this. With this pressure only going to intensify, Ionic provides organisations with software enabling them to comply with their tax and reporting requirements.”
Wiehann Olivier, Partner and Digital Asset Lead at Mazars, added: “As the appointed auditors of various cryptocurrency and digital asset service providers, Cryptio has become an essential tool in our tech stack. We have seen a massive uptick in operating companies allocating cash to digital assets and cryptocurrencies, as well as new crypto-native businesses. Cryptio helps us service this growing client base. We are able to track assets and transactions from DeFi protocols, wallets, exchanges, and institutional custodians to construct a complete picture of our client’s digital asset activity.”
Tim Draper, Founding Partner at Draper Associates, also commented: “I look forward to a time when I operate completely in Bitcoin, where all my records are kept on the blockchain and all my distributions occur via smart contracts. Cryptio solves a key problem in allowing accounting to transcend the currency businesses operate in, so they can focus on providing more and better services to their customers ― who pay with whatever currency they prefer.”