Major cryptocurrency exchange KuCoin has hired auditor Mazars to confirm its proof of reserves in a third-party factual findings report, days after rival exchange Binance did the same.
According to a statement on KuCoin's official blog, Mazars will provide information on whether KuCoin's in-scope assets are collateralized.
The auditor's report will reveal the reserves and customer liabilities for KuCoin.
This will focus on the exchange's holdings of Bitcoin BTC/USD, Ethereum ETH/USD, and the two stablecoins, Tether USDT/USD and USD Coin USDC/USD, as well as margin and other accounts.
“This move is the next step in our efforts to provide transparency on our users’ funds, highlighting our commitment to transparency and strengthening industry trust. KuCoin has been committed to providing users with safe and easy-to-use platforms and products since day one, while making continuous progress in user protection, transparency, and risk control,” KuCoin CEO Johnny Lyu said in a statement.
The report of the factual findings is expected to be released in several weeks.
Crypto Exchange Increase Transparency Following FTX Collapse
KuCoin is not the only exchange that has come forward to increase its operational transparency.
Following the high-profile collapse of the once-leading cryptocurrency exchange FTX and its affiliated trading firm Alameda Research, centralized exchanges throughout the industry have been scurrying to validate their proofs of reserves.
In the first half of November, Bitcoin exchange Bitfinex released information on its reserves, while rival Binance released its own proof-of-reserves system, starting with Bitcoin, last week.
Recently, crypto derivatives exchange Bitmex started allowing users to self-verify their liabilities in its total liability balance sheet.
Photo: Courtesy of Marco Verch on flickr.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.