Top Cryptocurrency Exchanges Lack Third-Party Auditing, Says Report

• Slightly over half of the firms participated in the survey, providing either complete or partial responses.
• Coinbase, Circle, and Ripple confirmed that they undergo annual audits conducted by Deloitte.

Reports indicate that Bloomberg News carried out a survey that encompassed 60 well-known cryptocurrency companies. The survey encompassed a wide range of entities, including exchanges, mining companies, analytics firms, and token issuers. Its objective was to assess the state of governance and controls within the crypto industry.

Several of these companies, such as Binance, Coinbase Global Inc., Tether, and OpenSea, handle the movement of tens of billions of dollars in assets daily. While some of these companies do adhere to conventional standards, a significant number operate outside the traditional norms and frameworks. The purpose of the survey questions was to assess the percentage of top-tier cryptocurrency companies that engage the services of a third-party auditor and maintain an independent board. 

According to reliable sources, approximately 50% of the surveyed businesses currently utilize the services of an independent auditor to evaluate their financial matters. The findings also revealed that 63% of the companies maintain an independent board of directors. Indicating the presence of at least one non-executive member. Notably, nearly all of the 60 firms surveyed have secured external investments since their establishment. 

The survey findings indicate that out of the 24 firms that disclosed details about their present auditor. Around 46% reported that their complete financial audits were carried out by one of the prominent Big Four accounting firms. Coinbase, Circle, and Ripple confirmed that they undergo annual audits conducted by Deloitte. Additionally, the majority of the companies surveyed had been subject to regular external financial checks for a minimum of three years.