- Binance’s Asia-Pacific president said the audit would take longer than first anticipated.
- CEO, Changpeng “CZ” Zhao, claims crypto audits are difficult.
Following the demise of rival cryptocurrency exchange FTX, there have been demands for more openness, and a comprehensive audit of Binance is still outstanding. Binance’s Asia-Pacific president Leon Foong said on Wednesday that the exchange’s complete audit of its cryptocurrency holdings and liabilities would take longer than first anticipated.
When auditing company Mazars stopped doing work for cryptocurrency companies, it also removed Binance’s previous proof-of-reserves report. Bloomberg reported on February 8 that Binance’s Asia-Pacific president Leon Foong said the business needed additional time to provide a thorough audit of its cryptocurrency holdings and liabilities.
Auditing Firms Hesitant Due to Scrutiny
The cryptocurrency trading platform has not yet found a suitable auditing company to do a full audit of its financials. Large auditing firms, however, are only just learning about the cryptocurrency business, while other auditing firms are hesitant to engage with crypto enterprises owing to greater scrutiny from authorities.
Since the FTX crisis, Binance, the largest cryptocurrency exchange by trading volume, has been under significant community pressure to improve its level of openness. Mazars Group published Binance’s proof-of-reserves report in December, however because of heightened scrutiny, the business has ceased providing auditing services to cryptocurrency companies and has since removed the report.
Binance’s CEO, Changpeng Zhao, claims crypto audits are difficult. Glassnode data from December showed that Binance under-reported its crypto holdings in its PoR. Binance also acknowledges that it misplaced the collateral for some of its tokens and put it in the same wallet as client cash. The error is currently being addressed by the exchange.
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