KuCoin Taps Audit Firm Mazars to Verify Proof of Reserves
- Crypto exchange KuCoin has engaged international audit firm Mazars to provide a third-party factual findings reports on the exchange.
- The audit firm will also be responsible to “provide the details to showcase KuCoin’s proof of reserves and customer liability.”
- KuCoin stated that the report from Mazars will come out in a few weeks on the official website of the crypto exchange.
- CEO of the crypto exchange, Johnny Lyu, stated that this move initiates the next step in the efforts to display increased transparency.
KuCoin, the 4th biggest crypto exchange in terms of spot and derivatives trading volume, has tapped Mazars, an international audit, tax, and advisory firm, to verify its proof of reserves and provide a third-party factual findings report. This comes at a time when exchanges are trying to prove their worth and liquidity to their customers due to the collapse of another exchange, FTX.
According to a blog post from KuCoin, “Mazars will offer KuCoin’s customers and prospective customers additional transparency and reporting on whether their in-scope assets are collateralized.” The audit firm will also be responsible to “provide the details to showcase KuCoin’s proof of reserves and customer liability, respectively, which will also account for customers’ main, trade, margin, robot, and contract accounts, etc. for BTC, ETH, USDT, and USDC.”
“After recent events there is a dire need in the industry for additional transparency and we are confident that Mazars’ PoR service offering to KuCoin and other international cryptocurrency exchanges will aid in building trust through transparency,” said Wiehann Olivier, Partner and Digital Asset Lead.
KuCoin stated that the report from Mazars will come out in a few weeks on the official website of the crypto exchange and requested its customers and crypto enthusiasts to view the same. Additionally, the CEO of the crypto exchange, Johnny Lyu, stated that this move initiates the next step in the efforts to display transparency and instil faith in the users of the platform regarding the reserves of the exchange.
Meanwhile Lyu also added that his firm prioritizes the security and trust of its users and also stated that this is an attempt to improve the investors’ sentiment amid the current bearish market. Following the filing of Chapter 11 bankruptcy by crypto exchange FTX, there has been a huge fear in the crypto space regarding transparency and centralization.
Additionally, KuCoin has been making big moves in the bearish market. The exchange recently raised $10 million in strategic investment from one of the largest quantitative trading firms, Susquehanna International Group (SIG). The exchange also hit a record-high of over 9.75 million new registered users in the first half of 2022.
Interestingly, in late November, the world’s biggest crypto exchange Binance confirmed that it had also appointed Mazar in order to conduct a “third party financial verification” in Binance’s proof of reserves.