As global crypto regulators crack down on crypto asset services, Tether Holdings Ltd. entered into an agreement with the Italian subsidiary of BDO LLP. The agreement is to issue attestations every quarter and is a move designed to shift course as crypto regulations tighten.
Background
According to a press release from the company, Tether began working with BDO Italia in July. BDO Italia is a stand-alone subsidiary of the fifth-largest accounting network internationally. Previously, MHA Cayman, an accounting firm based in the Cayman Islands, was the assurance partner for Tether. Tether is set to release a public attestation of its reserves for the second quarter later this month.
However, BDO Italia has not issued an official statement regarding its new partnership with Tether.
The modification comes as officials get ready to impose stricter regulations on the stablecoin industry. The proposed legislation is anticipated to mandate issuers like Tether to submit thorough and frequent reporting on their reserves. Other anticipated mandates include applications for licenses akin to those granted to banks, and doing away with contentious reserve assets.
As per official statements from Tether, the company plans on progressing to monthly reports on reserves in contrast to quarterly reports. “Complete audits” are also going to be introduced in the future. However, there were no statements regarding whether BDO Italia would be responsible for such filings in the future.
Participants in the cryptocurrency industry and authorities pay close attention to these reports. They give people hope that such tokens will continue to be redeemable for fiat money.
