PwC Hong Kong Explores Stablecoin Market For Easy Auditing
The industry lacks financial structures to conduct the audit.
PwC In Partnership To Establish Stablecoin Best Practices
PwC accounting and consulting firm, Hong Kong branch is looking for a suitable option for issuing stablecoins. The course will be undertaken in partnership with Loopring Foundation.
The Tuesday announcement comes just days after PwC US resorted to advising Cred, a decentralized lending service provider. The firm deploys a dollar-linked coin.
In recent times, we have been seeing a growing interest in stablecoins. Major firms are launching their own. Circle recently released USDC with firms like IBM and Coinbase venturing into the same arena.
The interest is coinciding with the troubles facing pioneering stablecoin USDT. Recently, fears were rife that the stablecoin had run out of its dollar reserves leading to loss of its dollar peg.
According to William Gee from PwC, it is time to look at stablecoins in a regulated environment. He said that we should determine protocols and viable practices in the market.
Loopring Foundation was set up to drive decentralized trading protocols. The foundation stated that dealing with PwC will be key in pushing for transparency regarding the development and management of stablecoins and offerings.
In a statement, Daniel Wang from Loopring stated that we have a high level of security and audibility that will be powered by Loopring protocol. He added that the measure will be critical in advancing the sector.
With the entry of firms like PwC in the sector, a number of questions arise. Many are wondering if it will be viable for top auditing firms to conduct stablecoin auditing.
According to Gee, PwC was keenly reviewing the area. He added that PwC has been selected to conduct an audit on Tezos. Tezos is among the several early blockchain ICOs that suffered numerous challenges after their launch. He commented on stablecoins where he said that lack of regulations makes it diverse.
He echoes the same point as Cameron Winklevoss from Gemini. Recently, Gemini unveiled its own stablecoin dubbed GUSD. Through his Twitter, Cameron stated that at the moment we lack an established financial mechanism for auditing stablecoins. He pointed out that lack of such protocols makes it hard for stablecoins to be audited. Cameron added that the only option available is to bring on board a third party to conduct the audit.
On the other hand, Tether stated that conducting an audit on its business model lacks a formal framework. The company made the announcement, moments after it ended its relationship with the Friedman LLP auditing firm. The firm was on the verge of releasing Tether’s full audit report.
Gee added that for auditing of stablecoins to take place, it is essential to address a few things like compliance with AML and KYC regulations.