Protocol Labs conveyed a statement confirming its partnership with accounting services provider Cryptio to enable Filecoin miners to satisfy audit obligations. Partnering with the institutional-grade Cryptio would benefit Filecoin with its crypto accounting package to ensure the financial audits comply with the oversight board requirements to go public.
Filecoin-Cryptio Partnership to Deliver Auditable Accounting and Tax Reporting
Filecoin operates as a decentralized storage protocol that enables users to rent surplus space and rewards participants involved in facilitating storing and retrieving of files within the network. The update portrays Cryptio as a provider of specialized services that utilizes software to offer accounting, audit, and tax solutions to crypto firms.
The partnership will facilitate Filecoin miners in extracting the auditable transaction logs from the network’s chain. The statement revealed by the Protocol Labs indicated that the partnership yields the capacity for the Filecoin miners to obtain the accounting reports. The statement considers the reports necessary to pass the financial audits conducted by the public accounting oversight board (PCAOB).
Allowing Storage Providers Import On-chain Activity Data
With storage providers (SP) within the Filecoin network exceeding 4000, the Cryptio platform would allow the miners to import the on-chain activity data. The data imported would feature complete accounting, tax reporting, and audit preparation aligned to the oversight body standards.
Compared to Filecoin, bitcoin has multiple mining firms listed within the publicly traded stock exchanges, among them Riot Platform (RIOT) and Marathon Digital (MARA). Such accomplishment is attributed to Bitcoin being the leading cryptocurrency in total market value. The recent decline in bitcoin prices and rising energy costs prompted various investors to ditch stocks of bitcoin miners, particularly during the prolonged winter period.
Will Filecoin Attract Investors to its Storage Providers?
Few dedicated Filecoin miners have listed their stock for public trading. Despite the hype in the Protocol Labs-Cryptio partnership, investors’ appetite for Filecoin storage providers is uncertain. Nonetheless, Cryptio reassured that it would provide the accounting service regardless of whether the miners choose to list.
Cryptio revenue executive Hermant Pandit admitted that Filecoin features a complex chain that is difficult to index compared to Bitcoin. Nevertheless, the Cryptio financial infrastructure is designed to ease accounting reporting complying with auditable standards.
Possessing accounting reports hardly offers a gateway for private entities seeking to go public. Instead, it constitutes a critical step that Cryptio has nurtured the skill to ensure they comply with the auditable standards in their accounting reporting.
Pandit admits the difficulty of firms going public without proof of the infrastructure. He adds that the US Securities and Exchange Commission sets higher audit standards for publicly-traded companies. Complying with the requirements was cited when several Filecoin miners were blocked from going public.
Pandit lauded the inclusion of Protocol Labs within the Cryptio portfolio that features over 300 entities, including Chivo, 1inch, and MetaMask.