Binance’s full audit of its crypto assets and liabilities will take more, Binance’s Asia-Pacific head Leon Foong disclosed on Wednesday.
A full audit of Binance is still pending despite calls for more transparency following the collapse of the crypto exchange FTX. Also, Binance’s earlier proof-of-reserves report by auditing firm Mazars was deleted after the firm suspended works for crypto firms.
Binance Full Audit Report To Take More Time
Binance’s Asia-Pacific head Leon Foong admits that the company needs more time to release a full audit of its crypto assets and liabilities, reported Bloomberg on February 8.
The crypto exchange is still looking to hire a top auditing firm to audit its whole balance sheet. However, big auditing companies are still learning about the crypto market and other auditing firms are reluctant to work with crypto firms due to increased scrutiny by regulators.
“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.”
Binance being the top crypto exchange in trading volume is facing intense pressure from the community to increase transparency following the FTX crisis. Mazars Group released Binance’s proof-of-reserves report in December, but suspended its services for crypto firms and deleted the report due to increased scrutiny.
Binance CEO Changpeng “CZ” Zhao argues crypto audits are challenging. Meanwhile, Nasdaq-listed Coinbase’s annual statements by leading audit firm Deloitte indicate large crypto exchanges can be audited.
Is Binance FUD Still In Effect?
In December, Glassnode data revealed under-reporting of Bitcoin holdings by Binance in its self-reported PoR. Also, Binance admits mistakenly storing collateral for some of its tokens in the same wallet as the exchange’s customer funds. The exchange is working to quickly fix the error.
While other crypto firms are slashing their workforce, Binance is expanding globally. Recently, Binance acquired South Korea’s GOPAX crypto exchange to re-enter the market after two years. Moreover, Binance is focusing on becoming more efficient, increasing employees, and identifying areas that need restructuring.
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