Binance says big auditors not ready for it yet

Binance declares that the big auditors still have a lot to learn about the crypto industry and so a full audit probably won’t take place soon.

Binance detractor has his say

Binance has suffered much FUD in recent times, and those looking to see the biggest crypto exchange by volume fail have heaped plenty of criticism and doubts upon how it operates.

Kevin O’Leary, big businessman entrepreneur, and paid as a spokesman by Sam Bankman-Fried of FTX infamy, was recently interviewed by Scott Melker on the Wolf of All Streets YouTube channel, and he took every chance to smear “unregulated exchanges” and their “faux equity” tokens – mentioning Binance on a few occasions as being one of the main culprits.

Can the big auditors handle crypto? 

Leon Foong, head of Binance Asia-Pacific was quoted by Bloomberg as saying that there weren’t agreed standards for price volatility for example. He stated:

“It’ll take a longer time. It shows you the limitations of the more traditional industries because there is a learning curve. Number one, it’s not their core competence. And number two, obviously there’s a lot of scrutiny if they get it wrong.”

However, the Bloomberg article does cite the Coinbase annual statements carried out by Deloitte as proof that the major accountants can in fact carry out this type of work for crypto companies.

Past mistakes

Binance itself does admit that it has made mistakes in the past in how it manages its stablecoins reserves. Also, it acknowledges that it was in error when it held various token collateral in the same wallet intermingled with client funds.

Foong stated that this issue was being rectified by the exchange and would be completed as soon as possible. He also said that the Binance proof-of-reserves statement would be enlarged upon.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.