Introduction
Finst, a Dutch cryptocurrency platform, has released a groundbreaking Proof of Reserves (PoR) audit conducted by AuditNow, an independent Dutch audit firm. This audit sets higher transparency standards in the crypto industry and addresses the limitations of traditional PoR. Finst’s comprehensive framework provides full transparency on its structure, operations, assets, liabilities, business activities, and overall safety. The audit confirmed that Finst holds its clients’ assets on a full reserve basis (1:1) and has implemented an effective segregation of assets.
Main Points
The key points from the audit are as follows:
– Finst’s policies and procedures effectively safeguard clients’ assets.
– The designated roles and responsibilities in the safeguarding procedures are fulfilled.
– Assets transfers are strictly restricted to designated senior management employees.
– Clients’ assets are held in a bankruptcy-remote vehicle, preventing commingling of funds.
– All clients’ assets have been acquired through users’ deposits, without the use of any loans.
– There is no transfer or use of clients’ assets by any third party.
– Clients’ assets are fully available within a maximum time frame of 2 days.
– Finst’s collateralization rate is over 100% for all listed cryptocurrencies.
– All cryptocurrencies listed on Finst’s platform have been included in the audit scope.
Closing
The release of Finst’s extensive Proof of Reserves audit sets a new standard in the crypto industry and promotes transparency and safety. As a crypto investor, having access to reliable insights into an exchange’s reserves and overall safety should be the norm. Finst’s commitment to conducting regular audits every 6 months further ensures continuous transparency for its clients. This initiative should be embraced by other crypto platforms to enhance the industry’s transparency and safety as a whole.
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