By CryptoDaily - 8 months ago - Reading Time: 3 minutes
Finst becomes first Dutch cryptocurrency platform to release an extensive Proof of Reserves
According to LBank's latest announcement: https://support.lbank.com/hc/en-gb/articles/22061348602521
Amsterdam-based cryptocurrency exchange Finst announces the successful release of its Proof of Reserves (PoR) conducted by a reputable and independent audit firm Finst’s extensive Proof of Reserves audit is a first-of-its-kind, aiming to address the limitations of traditional PoR and set higher transparency standards in the crypto industry The audit, which will be renewed at least every 6 months, confirmed that Finst holds its clients’ assets on a full reserve basis (1:1) and has implemented an effective segregation of assets.As a crypto investor, getting access to reliable insights into an exchange’s reserves and overall safety should be the norm. 8 months only after its launch, Finst becomes the first and only Dutch cryptocurrency platform to unveil an extensive Proof of Reserves audit conducted by AuditNow, a reputable and independent Dutch audit firm.
The audit was skillfully led by AuditNow’s CEO, Daniël Waknine, a distinguished member of the World Compliance Association who has previously been collaborating with esteemed institutions such as BNP Paribas and ING holding.
As part of its Proof of Reserves audit, Finst has developed a comprehensive framework which provides full transparency on its structure, operations, assets, liabilities, business activities and overall safety.
Challenging traditional Proof of Reserves limitations
Traditional Proof of Reserves audits merely focus on an exchange’s on chain holdings, with a scope often being limited to certain crypto assets, thus excluding the cash reserves of an exchange and its liabilities. Besides, traditional PoR audits do not verify whether an exchange has an effective segregation of assets in place, which is key in providing maximum safety as it prevents commingling of assets.
Julien Vallet, CEO & co-founder, commented: “Our analysis of various Proof of Reserves (PoR) statements highlighted a need for greater clarity in this area. Traditional PoR tend to leave important questions unanswered for investors, which is why we decided to develop a new standard which goes far beyond the verification of on-chain holdings.”
The outcome of Finst’s Proof of Reserves audit
The results of this thorough and independent audit confirmed that Finst holds the entirety of its clients’ assets on a full reserve basis (1:1) and has an effective segregation of assets in place through a bankruptcy-remote vehicle. Additionally, the audit verified the following key points:
Finst has policies and procedures in place to correctly safeguard its clients’ assets The designated roles and responsibilities in the safeguarding procedures are fulfilled A strict restriction of assets transfers to designated senior management employees is enforced Clients’ assets are held in a bank account and wallets through a bankruptcy-remote vehicle, without any possibility of commingling funds All clients’ assets have been acquired through users’ deposits, without the use of any loans There is no transfer or use of clients’ assets by any third party Clients’ assets are fully available, with a maximum time frame of 2 days Finst’s collateralization rate is >100% for all coins listed on its platform All cryptocurrencies listed on Finst’s platform have been included in the audit scopeThe exchange also confirmed that it will renew its comprehensive Proof of Reserves audit at least every 6 months to ensure continuous and transparent information for its clients.
Julien Vallet, added: “Cryptocurrency investors rightfully deserve to know how well they are protected, especially in the wake of recent global exchanges collapses. We were surprised to see that no Dutch crypto platform has ever released a Proof of Reserves, and we firmly believe that this should become a standard practice. We extend an open invitation to all crypto platforms to join us in embracing this vital initiative so that we can collectively enhance the transparency and safety of the entire industry.”
To learn more, please read the Proof of Reserves statement (EN).
About Finst
Finst is the fastest-growing cryptocurrency exchange in The Netherlands and offers a best-in-class investment platform together with institutional-grade security standards and 82% lower trading fees. Finst is led by the ex-core team of DEGIRO and is registered as a Crypto Service Provider with De Nederlandsche Bank (DNB). Finst aims to become the largest and most trusted cryptocurrency platform in Europe by enabling retail investors to benefit from the same opportunities and tools as professional traders. For more information visit www.finst.com.
Original source: CryptoDaily