KuCoin has employed the services of Mazar as an external firm to audit its proof of reserve. This is happening in the wake of the FTX crash and suggestions by Binance and other exchanges to foster transparency in the crypto industry.
Proof of Reserve is a process of verifying the funds available in a centralized exchange. The procedure which helps to enhance transparency uses cryptographic proofs, ownership of wallet addresses, and other methods to verify the reserve of funds.
Mazars is a global audit, accounting, and consulting firm founded in 1945 in France and is present in more than 90 countries. Kucoin was started in Seychelles in 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin, and the exchange was launched on September 15, 2017.
The relationship between the two firms will allow Mazars to release neutral reports on the reserve of Kucoin. According to Kucoin, its customers will have access to transparent reports on Kucoin’s collateralized assets.
In addition, Kucoin users will know about details such as customers’ liability, customers’ main, trade, margin, robot, and contract accounts, for BTC, ETH, USDT, and USDC.
We want to build trust and transparency
Johnny Lyu, CEO of KuCoin, explained that Kucoin is taking this step to display transparency, build on the safety of customers’ funds and promote trust in the crypto space. He added working with Mazars became a necessary gesture, especially at a time when a lot of casualties have occurred in the crypto space.
Supporting Kucoin’s CEO, Wiehann Olivier, Partner and Digital Asset Lead at Mazars South Africa, noted that the current trends in crypto make it vital for additional transparency across crypto exchanges. “We are confident that Mazars’ PoR service offering to KuCoin and other international cryptocurrency exchanges will aid in building trust through transparency,” he added.
Apart from Kucoin, other exchanges such as Binance, Kraken, and Crypto.com have initiated Proof of Reserve as a transparency tool to build trust with users. For Kucoin, details of the report on its proof of reserve will be published on its website in a few weeks.