Popular crypto exchange, Kucoin has hired an international accounting firm Mazars to verify and audit its Proof-of-Reserves (PoR). The CEO of the exchange, Johnny Lyu confirmed the development in a Monday Twitter post. According to the Kucoin CEO, the engaged Mazars will provide a third-party factual findings reports for the exchange.
Notably, Kucoin believes the engagement of Mazars will help avail customers of the exchange with additional transparency. Further, the audit firm will verify if Kucoin’s in-scope assets are truly collateralized. Additionally, it will avail details to indicate the proof-of-reserves and customer liability of the exchange. All these, as reported, tends to account for customers’ main, trade, margin, robot, and contract accounts.
Furthermore, the Kucoin CEO maintained that the exchange has, over time, shown constant commitment to providing users with safe and easy-to-use platforms and products. According to him, the exchange has since its creation continued to improve on its risk control, transparency and user protection. He, however, expressed his excitement over the engagement of the audit firm. Lyu expressed optimism that the firm possesses the capacity to live up to its expectations. Worthy noting, he revealed that the hiring of Mazars emanated as a crucial decision to avail users with a safe and credible platform during the turbulent period of the sphere.
Additionally, Wiehann Olivier, the partner and digital asset lead of the exchange also reacted to the development. According to Olivier, recent events in the industry heightened the need for additional transparency to sustain users’ trust. The official expressed confidence in Mazars’ PoR service offering to Kucoin and other international crypto exchanges. Notably, Olivier believes the efforts of the audit firm will help in building trust through transparency.
Kucoin, others seeking to sustain users’ trust amidst FTX crisis
Worthy of note that the collapse of FTX has impacted the trust reposed on crypto firms, particularly by their users. Since the issue dominated the airspace, many crypto exchanges, including Kucoin and Binance have continued to initiate measures to foster transparency and sustain the trust of their customers. Meanwhile, by December 12, KuCoin, Binance and others are expected to provide information on consumer protection. Notably, the request for such information manifested from United States Senator Ron Wyden. As revealed, Wyden requested Binance, Coinbase, Bitfinex, Gemini, Kraken and KuCoin to avail information on their subsidiary companies. The senator also wants the firms to reveal the steps taken by them to safeguard consumer assets against market manipulation. Wyden lamented how crypto users with FTX lacked such protection.