Full audit of Binance’s reserves ‘some way off’ – exec
Binance Asia-Pacific head Leon Foong said that a full audit of the exchange's reserves will take a while given that big accounting firms are still learning about the crypto sector.
Binance Asia-Pacific head Leon Foong said a comprehensive audit of the exchange’s reserve is not possible in the near term, given the crypto learning curve for big accounting firms, Bloomberg News reported.
Binance had worked with auditing firm Mazars to publish its first Bitcoin proof of reserve (PoR) report. However, following the collapse of FTX, Mazars announced that it would stop working with crypto clients globally.
Binance Asia-Pacific head Leon Foong told Bloomberg News on Feb. 8 that a full audit of the exchange’s reserve may be “some way off” given that big accounting firms are still learning about the crypto sector.
Foong said that the challenge Binance is facing in publishing its full audit report is tied to the limitations of traditional accounting firms.
“Number on, it’s not their core competence. And number two, obviously there is a lot of scrutiny if they get it wrong.” Foong added.
He noted that traditional accounting firms lack agreed standards for challenges like price volatility that rocks the crypto sector.
In the meantime, Foong said that Binance is working to separate its collateral from customer funds and publish a more comprehensive proof of reserve statement.
Binance’s first reserve report was criticized for not including its liabilities with the assets.
Binance CEO Changpen Zhao explained that auditing liabilities was harder and said the exchange has no outstanding loans.