What is Happening in the Supervision of Crypto Firms?
Research crypto firms Mazars Group has suspended its proof-of-stake for cryptocurrency exchanges following the recent backlash it received from members of the crypto community.
Finally, Mazars is closing all transactions with KuCoin, Binance, Crypto.com, and other crypto companies. Binance confirmed the news saying that “unfortunately this means we will not be able to work with Mazars at this time”.
Since the implosion of the FTX Derivatives Exchange in November, investors have lost faith in the central exchange. The lack of trust in these digital asset custodians has led consumers to withdraw from many of the exchanges. The leaders and owners of these companies understand the importance of alleviating their customers’ fears.
They fear that they will suffer like FTX if nothing is done. With this in mind, the process of proof begins. The evidence of reservation study shows the digital assets of the company to evaluate if they are used or supported properly. The changes involved say that the report of this study promotes understanding.
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Mazars Is Doing Proof of Security For Binance And Others Crypto Firms
KuCoin challenged Mazars to conduct a proof of deposit study, as Crypto.com’s USDT deposit stands at 106%. The accounting firm also led the leading crypto exchange Binance and announced that the Bitcoin (BTC) currency of the exchange is maintained at 101%, which means that it is sustainable.
Critics criticized the report, adding that it appeared to be a “consensus” and not a thorough investigation. This later led to confirmation from CryptoQuant, a blockchain research platform that said everything was verified by Binance. CryptoQuant also noted that the crypto exchange has a clean stash, meaning its token, BNB, still represents a small portion of its total assets. In that, it was said that Mazars’ proof of keeping studies did not in any way promote investor confidence, referring to the failure to provide complete information. Mazars explained that its report “does not provide assurance or research on the subject. Instead, they report limited results based on agreed-upon procedures that have been conducted on the subject throughout history.
As it is, Binance has decided to look for another transparency system.