The Big Four firms - Deloitte, PwC, EY and KPMG - have asked their executives and partners to disclose cryptocurrency investments made by them or their family members during the year.
Deloitte and PwC partners have to disclose investments as small as Rs.10. The firms fear conflict of interest if partners or their family members hold digital currencies.
As part of the annual risk-assessment process, the Big Four firms have also sought details of investments in non-fungible tokens (NFT) or other crypto assets.
A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a blockchain, a form of digital ledger. NFTs use a digital ledger to provide a public certificate of authenticity or proof of ownership, but do not restrict the sharing or copying of the underlying digital files. The lack of interchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin.
Bitcoin and other cryptocurrencies are the most prominent uses of blockchain technology, and they are examples of fungible tokens.
Please note that bitcoins crypto assets may be considered as fungible..
Execs could face fine or be sacked if they fail to make disclosures.
Many of the Big Four projects involve directly working with the Reserve Bank of India (RBI) and the government. And they want to be above board.
The focus is mainly on the partners of the Big Four firms. There are about 1,600 partners in the Big Four firms who head service functions like consultancy, taxation or audit.
In the Big Four, the compliance department is tasked with verifying whether partners are making full disclosures.
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