August 22, 2023 – Amsterdam, Netherlands
Amsterdam-based cryptocurrency exchange Finst announces the successful release of its PoR (proof of reserves) conducted by a reputable and independent audit firm.
Finst’s extensive PoR 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 six 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.
Only eight months after its launch, Finst becomes the first and only Dutch cryptocurrency platform to unveil an extensive PoR 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 PoR audit, Finst has developed a comprehensive framework that provides full transparency on its structure, operations, assets, liabilities, business activities and overall safety.
Challenging traditional PoR limitations
Traditional PoR 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 and co-founder of Finst, said,
“Our analysis of various 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 [that] goes far beyond the verification of on-chain holdings.”
The outcome of Finst’s PoR 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…
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