Professional services company PricewaterhouseCoopers (PwC) is reportedly exploring a blockchain-based analytics instrument to monitor tokens after their initial coin offering (ICO) events. Thus, the company’s China and Hong Kong team aims to reduce the risks associated with digital coins that might be used for money laundering or illicit activities.
PwC China and Hong Kong representative Eric Young explained that the tool came after he had observed that more and more Asian firms operating in retail and technology sectors were planning to raise funds via ICOs. The forensic services partner added that companies mostly choose Hong and Singapore as the most convenient jurisdictions to organize the token sale events. He said:
“While on the blockchain ledger one could track the amount of transactions that have been done using the cryptocurrencies, there is still no way for an issuer of an ICO to trace its coins and know how these coins are being used.”
Young said that PwC blockchain analytics tool will address the situation and will help ICO organizers make sure their tokens don’t reach sanctioned regions or are used for illicit activities. He revealed that the tool was developed by a team of over 80 people.
“With artificial intelligence built into our back engine, our solutions would enable clients to better predict which jurisdictions the digital token could potentially be circulated to. Depending on the type of company and the type of business it is engaged in, it could then apply a high risk score to that particular jurisdiction,” Young added.
PwC has been working with companies looking to set ICO events by helping them with handling the governance structure, finding customers under KYC standards, and complying with all the regulation and AML principles.
Last year, PwC China and PwC Singapore started the partnership with Singapore-based VeChain, a company focused on the Internet of Things and blockchain solutions in the supply chain industry.