Leon Foong, Binance’s head of Asia-Pacific, claimed that a full audit of the exchange’s reserves is “some way off” due to the steep learning curve associated with auditing crypto firms.
In an interview with Bloomberg, Foong claimed that accounting companies do not possess agreed standards for dealing with price volatility and other challenges.
He added that Binance plans to publish a more comprehensive PoR report after hiring a third-party auditor to review its complete balance sheet.
In his words,
“Number one, it’s not their [traditional accounting firms’] core competence. And number two, obviously there’s a lot of scrutiny if they get it wrong.”
According to Foong, Binance aims to acquire 200M users from the Asia-Pacific region. The exchange is also working to segregate collateral from its clients’ funds.
Shortly after FTX’s collapse, Binance published its first Proof-of-Reserves report that was audited by Mazars.
However, the report drew a lot of criticism from the community as it failed to provide adequate details of Binance’s internal financial controls. Subsequently, Mazars removed the PoR audit on Binance’s reserves from its website.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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