BTC, ETH reserves overcollateralized at KuCoin: Mazars.

Mazars audit on KuCoin will be covering BTC, ETH and stablecoins.
Audit reports shall be available on KuCoin’s official website in a few weeks.
US Senator Ron Wyden has requested KuCoin and 5 others to provide information on consumer protection.

Ever since the FTX collapse, every crypto firm is trying to play safe, particularly cryptocurrency exchanges. Firms are getting their finances and working structure audited to find and address loopholes. Crypto exchange KuCoin recently hired Mazars, the international accounting firm, for a third-party audit for its Proof-of-Reserves.

KuCoin & Mazars

Per the December 5 announcement, the audit report is aimed at providing the customers of the exchange with much-required transparency and proving that their assets are collateralized. The report shall also shed light on margin, main, trade, robot, and contract accounts for Ether (ETH) and Bitcoin (BTC), along with the stablecoin Tether.

The much-awaited report will be available on the official website of KuCoin within a few weeks. Johnny Lyu, KuCoin CEO, said this move is a well-thought-out effort to provide transparency on users’ funds. Partner and Digital Asset lead at Mazars, Weihann Olivier, also noted:

“After recent events, there is a dire need in the industry for additional transparency and we are confident that Mazars’ PoR service offering to KuCoin and other international cryptocurrency exchanges will aid in building trust through transparency.”

A crypto news agency reported that Mazars has also been appointed as an official auditor for conducting “third party financial verification” in Proof-of-Reserves of the biggest crypto exchange in the world on November 30.

Mazar’s Brief

Mazars is an international tax, audit and advisory firm founded in Europe. Headquartered in Paris, the international accounting firm is also one of the leading authors of Public Interest Entities (PIEs). The firm is previously said to have worked for the former head of the United States, Donald Trump’s company. The firm is believed to have cut ties with Trump and his family in 2022.

Senator’s request

The world’s largest crypto exchange and KuCoin, are among the six crypto firms that have been requested to provide information on consumer protection by Senator Ron Wyden until December 12.

Wyden has requested the world’s largest crypto exchanges, Coinbase, Gemini, Bitfinex, KuCoin and Kraken, to provide information on their subsidiary companies, what they are doing to safeguard consumer assets, how they are using customers’ data, and their mechanism to safeguard themselves against market manipulation.

The senator debated that crypto users who had funds on bankrupt crypto exchange FTX had “no such protections.” In contrast, such benefits are offered as default by registered brokers under the Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) and banks.

Regulatory oversight is the need of the hour in this industry. It is already suffering greatly from the ongoing crypto winter, and the aftermath of FTX’s collapse. All these events have collectively dampened investor confidence.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing