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The crypto market is maturing: KPMG report

The crypto market is maturing: KPMG report

The crypto and blockchain sector continues to show signs of maturity and is managing to attract investment, despite global and ecosystem challenges, according to KPMG’s Pulse of Fintech H1’22 report released in September.

Despite a drop from $32.1 billion in 2021 to $14.2 billion in 2022, the average mid-year investment level remains significantly higher compared to all years before 2021.

However, the well-known multinational professional services network’s France Director of Blockchain and Crypto Assets, Alexandre Stachtchenko, warned startups in the industry that only the strongest will survive.

The report, with its crypto-related optimism, comes at a time when the industry is still in the midst of a bearish market. Following TerraUSD, several other stablecoins also lost their dollar peg. In addition, many crypto-based companies filed for bankruptcy. While the world’s largest crypto, Bitcoin, shed over 50% of its all-time high in November 2021.

The KPMG report also discusses crypto regulation in different parts of the world. The report argues that El Salvador and the Central African Republic’s adoption of Bitcoin as legal tender has spurred interest in crypto applications among developing nations. The report also states that the EU will adopt new regulations for the crypto industry by the end of 2022.

On the other hand, regulators in other jurisdictions, like China, are more interested in fostering competition, evolution, and growth in crypto markets while protecting consumers, according to the report.

FAQs

How do I report crypto on financial statements?

1. Asset Disclosure: Include cryptocurrency holdings in the balance sheet under current assets. Specify the type of crypto and its market value at the reporting date.
2. Transaction Recording: Record crypto transactions, including purchases, sales, and transfers. Calculate gains or losses based on the cost of acquisition and the fair market value at the time of the transaction.
3. Fair Value Measurement: Use a consistent method to determine the fair market value of crypto. This can be based on market prices from reputable exchanges.

Does KPMG allow crypto?

To get the most accurate and up-to-date information regarding KPMG’s acceptance of cryptocurrency, I recommend reaching out directly to the specific KPMG office or contacting their customer service. Cryptocurrency acceptance policies may change over time, and it’s crucial to verify the current stance with the company.

Is crypto a growing industry?

Yes, crypto is considered a growing industry. Various indicators, including market capitalization, adoption rates, and ongoing developments, suggest the continued expansion of the crypto industry. In recent years, there has been an increase in institutional interest, regulatory clarity, and technological advancements within the crypto space. These factors contribute to the overall growth and maturation of the crypto industry.

How big is the crypto market in 2023?

In 2023, the cryptocurrency market size is projected to reach significant figures. According to Statista, the revenue in the crypto market is estimated to reach US$51.5 billion in 2024, with an expected annual growth rate (CAGR 2024-2028) of 8.62%. Additionally, Forbes mentions that by 2030, the worldwide cryptocurrency market is anticipated to grow at a compound annual growth rate (CAGR) of 12.5%.

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