In conjunction with forensic services partner Eric Young, accounting firm Pricewaterhouse Coopers (PwC) has now revealed that it is trialing new blockchain analytics tools that will track the use of cryptocurrencies following their launch after an Initial Coin Offering (ICO).
The partnership, explained by Young, offers a means for ICO issuers to explore how its tokens or coins are used in a wider marketspace.
“While on the blockchain ledger one could track the amount of transactions that have been done using the cryptocurrencies, there is still no way for an issuer of an ICO to trace its coins and know how these coins are being used,” Young elaborated.
The move might well assist ICO token issuers in navigating a complex and ever-changing legislative landscape, as governments and regulators refine their stances on both cryptocurrencies in general, and ICOs in particular.
Young explained that “With artificial intelligence built into our back engine, our solutions would enable clients to better predict which jurisdictions the digital token could potentially be circulated to. Depending on the type of company and the type of business it is engaged in, it could then apply a high-risk score to that particular jurisdiction”.
PwC and Young’s partnership aims to capture market interest as Asian cryptocurrency firms move to more liberal climates such as Hong Kong and Singapore, as Chinese regulators have begun to take hard stances on local access to offshore cryptocurrency exchanges and ICOs themselves.
PwC made headlines in late 2017 for its decision to accept Bitcoin as tender for its services. More recently, the firm has assisted ICO issuers in navigating Know Your Client (KYC) and Anti-Money Laundering (AML) legislation.
It remains uncertain if PwC’s blockchain analysis tools might raise fungibility concerns amongst new token projects, or how the project might interact with ‘darkcoin’ initiatives that intentionally obscure the trajectories of transfers.
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