8 ways for US crypto companies to enhance financial compliance

8 ways for US crypto companies to enhance financial compliance

The Blockchain Industry: Navigating Regulatory Challenges and Ensuring Compliance

The blockchain industry faces numerous obstacles in the United States due to the complex regulatory landscape. With various federal and state regulatory agencies asserting jurisdiction over the industry, crypto companies often find it challenging to operate in compliance with the ever-evolving regulations. However, despite the uncertainties, there is high-profile support for crypto in the U.S., compelling crypto companies to seek strategies to navigate the regulatory challenges and ensure their compliance standing.

The Unique Regulatory Landscape in the United States

The unique political environment in the United States has contributed to higher levels of skepticism among government authorities towards the crypto industry compared to other countries. The Securities and Exchange Commission (SEC), in particular, has taken high-profile punitive actions against crypto companies, creating a sense of unease within the industry.

Crypto companies operating in the United States must contend with a lack of clear and comprehensive guidelines, as there is no single regulatory body governing the industry. Instead, multiple agencies, such as the SEC and various state regulators, oversee different aspects of crypto activities. This fragmented system heightens the challenges faced by crypto companies seeking to establish or maintain a foothold in the U.S. market.

Strategies for Crypto Companies to Improve Accounting Procedures and Compliance

While the regulatory landscape in the U.S. may pose challenges, there are smart strategies that crypto companies can adopt to enhance their accounting procedures and compliance standing. These strategies, shared by members of the Cointelegraph Innovation Circle, offer valuable insights for navigating the regulatory environment effectively:

1. Use private blockchains

Private blockchains can play a crucial role in enhancing the credibility of accounting processes at scale while preserving privacy. By granting permissioned access to selected entities, private blockchains facilitate the delivery of provable raw data for accounting. The blockchain serves as a shared platform, enabling regulators to access necessary data without compromising sensitive information.

2. Maintain precise records

Given the recent crackdowns by regulatory authorities like the SEC, it is essential for crypto companies to maintain precise records of customer funds and money movements. Even if companies believe they are fully compliant, the U.S. administration’s increased scrutiny necessitates comprehensive documentation. Precise record-keeping can help mitigate potential regulatory issues and protect companies from adverse actions.

3. Adopt a rule-based system

Crypto companies should consider adopting rule-based systems to strengthen their accounting practices. Despite the lack of explicit regulations from the SEC and other key regulators, blockchain solutions themselves provide a mechanism for ensuring accountability. Compliance and procedures should align with established rules, allowing companies to maintain clear records of customer funds and movements and demonstrate their commitment to compliance.

4. Prioritize transparency and collaboration

Transparency and collaboration are crucial factors in improving accounting procedures and compliance in the U.S. crypto industry. Companies must prioritize compliance with existing regulations, implement robust accounting systems, adhere to Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, and actively engage with stakeholders. By fostering trust and actively engaging with the industry, crypto companies can contribute to the overall growth and development of the sector.

5. Provide wallet holders with P&L summaries

To enhance transparency and foster trust, crypto companies can provide wallet holders with detailed Profit and Loss (P&L) summaries. Summarizing the trades executed by each wallet and presenting the information in an easily accessible format can enable wallet holders to understand their financial positions more effectively. While considerations such as mark-to-market principles and tax laws need to be taken into account, providing P&L statements represents a proactive step toward better transparency.

6. Implement blockchain-specific accounting software

To ensure accurate tracking and reporting of transactions, crypto companies can leverage blockchain-specific accounting software. These specialized tools effectively record and track transactions, enabling companies to meet tax reporting requirements. Engaging regularly with crypto-focused accountants or legal experts is also crucial, as they can guide companies through the ever-evolving regulatory landscape and ensure ongoing compliance.

7. Establish regular internal audits

Implementing robust internal controls and conducting regular audits are essential for maintaining accurate financial reporting, detecting and preventing fraud, and demonstrating compliance with regulatory requirements. Crypto companies should establish clear financial policies and procedures, segregate duties, conduct periodic independent audits, and maintain proper documentation and record-keeping. These measures help instill confidence in regulators and stakeholders, reinforcing a company’s commitment to compliance.

8. Don’t wait to bring in the experts

While it may be costly for early-stage crypto companies, seeking legal and regulatory expertise early on can help reduce future costs. Prioritizing legal and regulatory compliance from the inception of a project can prevent bottlenecks and operational disruptions in the long run. Engaging experts who can provide guidance on potential legal risks and compliance requirements enables companies to implement best practices and develop compliant products and services.


Despite the regulatory challenges faced by crypto companies in the United States, smart strategies can help ensure compliance and improve accounting procedures. By leveraging private blockchains, maintaining precise records, adopting rule-based systems, prioritizing transparency and collaboration, providing P&L summaries, implementing blockchain-specific accounting software, establishing regular internal audits, and seeking expert advice, crypto companies can navigate the regulatory landscape and contribute to the growth and development of the blockchain industry.

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration, and thought leadership. The opinions expressed in this article do not necessarily reflect those of Cointelegraph.

Learn more about Cointelegraph Innovation Circle and see if you qualify to join

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


After the FTX era How should cryptocurrency trading platforms adapt?

Using secure protocols, education, and automation can help rebuild cryptocurrency exchanges for the better.


Is it time to buy the dip? Looking at the current bear market from a cryptocurrency investor's perspective

Do cryptographic VCs know things that regular individual investors don't know? Shouldn't we be buying on the dip now ...


Surf Protocol The contract version of UniSwap, a derivative protocol that allows everyone to open a decentralized exchange.

Made a crucial innovation allowing anyone to provide perpetual contracts for any on-chain token, without requiring pe...


What are the obstacles on the road to realizing Hong Kong's dream of becoming a cryptocurrency hub?

Hong Kong has big dreams for its cryptocurrency and Web3 industry, but the slow start of new regulatory measures is m...


Commemorating the 15th Anniversary of the Bitcoin White Paper 'Archaeology' How Did I Get My Bitcoin Airdrop in 2011?

On the occasion of the 15th anniversary of the release of the Bitcoin whitepaper, I would like to share a personal jo...


Uniswap Investor Sells Tokens During Surge: Wallet Holds $10.6 Million Worth of Tokens

The wallet still contains an impressive $10.6 million worth of UNI tokens.