Cryptocurrency investors FTX events Afterwards we saw that they started to withdraw from the stock markets and even stopped investing. However, FTX went down in history as a highly qualified fraud event using only the name of cryptocurrencies. Just like in things like Çiftlik Bank in our country…

After the events, Binance CEO CZ; to the entire industry “Proof of Reserves (HbR)” he called. Like ‘independent audits’ that ensure fairness in the financial affairs of companies outside the crypto sector, PoR actually stands for ‘proof of reserve’.

Binance’s CEO made the call in early November:

“All crypto exchanges should do Merkle-Tree Proof of Reserve. Banks work with fractional reserves. Crypto exchanges should not be like this. @Binance will start making proof of reservation soon. Complete transparency.”

This call from CZ shows that Binance adheres to the text of principles that it published concurrently with the FTX events. As the world’s largest exchange, Binance to the vision of transparency and decentralization focuses on acting appropriately and improving the ecosystem in a positive way. Of course, these directions of a centralized structure are also subject to criticism.

Then, on November 22, Binance announced that it held 582 thousand 485 Bitcoins, this information was confirmed in the independent audit report:

Also published was Binance’s independent Bitcoin reserves report, which was reviewed by Mazars, an international accounting, tax and advisory firm with offices in Turkey. The figures in the independent report were the same as the reserves report previously announced by Binance. This shows that after Binance’s call, it completed the process in an exemplary manner for the industry.

Binance users’ net balance was recorded as 575 thousand 722 BTC; showing that Binance has 101% BTC reserves.

The “proof of reserve” for exchanges is limited to Bitcoin for now. If you have investments in other cryptocurrencies, it is not yet possible to verify these reserves:

According to Mazars’ warning, these proofs of reserve can only be made on Bitcoin reserves for now. If you own cryptocurrencies other than Bitcoin on Binance or any other exchange, to remember that the verified data only pertains to Bitcoin there is an advantage.

On the other hand, this move by Binance is just the beginning; Going forward, we can expect exchanges to increasingly publish reserve reports to gain credibility. The publication of these reports can also take place weekly, monthly or annually, depending entirely on the policy of the exchanges.

For now, it can be said that this trend, the first step of which was taken by Binance, will lead the industry in a positive direction and even provide an opportunity to adapt early to the regulatory requirements ahead.

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