The cryptocurrency markets week ends on a negative note due to accounting concerns and money laundering issues
Cryptocurrency-related assets are ending the week negatively, with accounting issues appearing to weigh on the market.
BitcoinBTC -1.9% is down 2% for the week starting Friday afternoon at $16,825 and 3% over the past 24 hours, while Ether is down 6% at $1,198 on Friday. CoinMarketCap statistics show that the global cryptocurrency market fell from $854.4 billion to $817.4 billion, down 4% this week.
Mazars, the Paris-based global accounting firm, has reportedly refused to provide evidence of reserve reports for crypto clients, multiple reports, after a Forbes report Thursday that Armanino's competitor is likely to end its digital auditing practice. The findings about the precarious accounting of the failed FTX exchange have magnified questions about how scrupulously crypto companies book their transactions and what level of oversight can be expected from auditors.
Binance Coin BNB -6.3% fell 7% to $242 on Friday, bringing its losses for the week to 16%. Mazars has conducted a proof-of-work audit of the world's largest cryptocurrency exchange by trading volume.
Cryptocurrency auditing may not be beneficial for accountants. A source told Forbes that pressure from clients at other companies to ditch cryptocurrency may be the reason behind Armanino's expected exit, and the same effect may apply to other reviewers.
On the stock market, the publicly traded crypto exchange Coinbase fell 5% to $35.97, a weekly decline of 11%. Silvergate CapitalSI -2%, a commercial bank that serves the digital asset industry, fell 3% to $18.29; this marks a 15% drop since December 9.
