Fee Recognition, Fund Segregation and Regulatory Reporting — handled by accountants who know how exchanges actually work.
Running a crypto exchange means your accounting has to keep up with your matching engine. Fee structures that don’t fit standard revenue recognition. Customer assets that need to be segregated and reported with precision. Regulatory reporting that changes faster than most accounting firms can track. Most accountants can handle one of these. We handle all of them.
Exchange revenue isn't simple. Maker-taker fee structures, tiered volume discounts, rebate programs, and spread revenue all need to be recognized correctly under ASC 606.
The difference between gross and net presentation alone can materially change how your financials read to investors and regulators. We get the revenue architecture right from the start.
Correct revenue recognition for every fee type and structure
Material impact on how financials read to investors
Properly classified, not lumped into a generic revenue line
Properly segregating customer assets, maintaining accurate customer balance records, and keeping customer funds demonstrably separate from operating funds is both a regulatory requirement and an investor expectation.
Commingling of customer and operational funds is one of the fastest ways to invite regulatory action or lose institutional partners. We build the accounting infrastructure that makes proper segregation continuous and demonstrable — not just at audit time.
Provable separation at any point, not just at audit
Accurate, reconciled, always audit-ready
Controls that stop the problem before it starts
At any given moment your exchange holds customer balances across spot accounts, margin positions, and pending settlements. Reconciling those balances accurately — ensuring what your system shows matches what's actually in custody — is a core accounting function that has to run continuously.
We build the process so it does.
System balances matched to actual custody positions
Open positions reconciled to the general ledger
In-flight transactions accounted for correctly
Every swap, conversion, or cross-asset trade on your exchange is an accounting event. We capture swap activity at the transaction level — recognizing gains, losses, fees, and spreads correctly — so your P&L reflects what actually happened across your full trading volume.
Every swap and conversion recorded correctly
P&L that reflects actual trading activity
Revenue captured at the transaction level, not estimated
Whether you're reporting to a state regulator, a foreign financial authority, or preparing for a federal examination, the financial reporting requirements for crypto exchanges are specific and unforgiving.
We handle the reporting and keep it current as your regulatory footprint grows.
MTL and money transmitter financial requirements
Reporting frameworks for every market you operate in
Books and records ready for any regulatory review
If your exchange offers futures, options, or margin trading, the accounting complexity multiplies significantly. We handle derivatives accounting, margin liability treatment, and the reconciliation between your trading engine and your general ledger.
Derivatives treated correctly from open to close
Borrowed positions on the balance sheet correctly
Trading system data matched to accounting records
Hot wallets, cold wallets, omnibus accounts, and customer sub-accounts all need to reconcile. At exchange scale, that reconciliation is not a monthly exercise — it's an ongoing operational accounting function.
We build the process so it runs continuously.
Real-time custody matched to customer balances
Offline custody tracked with the same precision
Every layer of custody reconciled continuously
The reconciliation backlog grows. The fee recognition gets murkier. The next audit or regulatory review starts feeling like a threat rather than a formality.
If you’re at that inflection point—or you can see it coming—this is the conversation to have now. We provide controller-level accounting for crypto exchanges without the overhead of building an internal team from scratch.
Here are some of the frequently asked questions and their best answers for your clarification.
Still have questions? Contact us.
Your matching engine deserves a back office that can keep up.
