PwC (PricewaterhouseCoopers) has announced the pilot testing of a new blockchain analytics tool designed to track digital tokens from their initial issuance. According to PwC, this software aims to help companies prevent illegal misuse of cryptocurrencies.
PwC Tests New Blockchain Analytics Software
PwC, along with its Hong Kong legal partner Eric Young, stated that the firm seeks to capitalize on the growing interest in ICO (Initial Coin Offering) financing among Asian companies in manufacturing, technology, and retail sectors.
Analysts speculate that as regulatory pressures increase in China, many cryptocurrency firms are relocating to more lenient jurisdictions like Singapore and Hong Kong. PwC aims to leverage this shift for business growth.
ICO Issuers Can Track Token Circulation with This Tool
Eric Young explained that the new analytics tool enables issuers to trace token circulation from the point of issuance, allowing companies to take preventive measures against illegal activities.
Young said:
"While blockchain's distributed ledger can track completed transaction volumes, ICO issuers still struggle to monitor where their tokens end up and how they're used."
"The software's backend framework incorporates artificial intelligence, enabling clients to better predict which regions the tokens circulate in. Depending on the company and its business type, the tool can also assign risk scores to specific regions."
PwC Collaborates with the Cryptocurrency Industry
In recent months, PwC has been working with companies planning ICO projects, assisting them with legal compliance, including KYC (Know Your Customer) and AML (Anti-Money Laundering) measures. The firm also provides legal support, consulting services, and tax structure advice.
In November last year, PwC Hong Kong revealed it had begun accepting Bitcoin as payment for its consultancy services.
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Frequently Asked Questions (FAQs)
1. What does PwC's new blockchain tool do?
The tool tracks digital tokens from issuance, helping companies monitor circulation and prevent illegal cryptocurrency use.
2. Why is PwC focusing on Asia for ICO services?
Many cryptocurrency firms are relocating to Hong Kong and Singapore due to stricter regulations in China, creating new business opportunities.
3. How does the tool help ICO issuers?
It provides visibility into token movement, allowing issuers to identify high-risk regions and take preventive actions.
4. Does PwC accept cryptocurrency payments?
Yes, PwC Hong Kong accepts Bitcoin for consultancy services.
5. What industries benefit from this tool?
Manufacturing, tech, and retail sectors leveraging ICO fundraising can use it for compliance and risk management.