Amsterdam-based cryptocurrency exchange Finst announced on Tuesday the completion of its Proof of Reserves (PoR) assessment conducted by AuditNow, a reputable independent auditing firm based in the Netherlands.
The announcement comes eight months after the launch of its cryptocurrency services.
The Proof of Reserves 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 was led by AuditNow’s CEO Daniël Waknine, a distinguished member of the World Compliance Association.
Finst’s PoR audit
Finst’s Proof of Reserves audit framework offers comprehensive transparency into its organisational structure, operational procedures, assets, liabilities, business activities, and overall safety.
As part of its Proof of Reserves audit, Finst has developed a comprehensive framework that provides full transparency on its structure, operations, assets, liabilities, business activities, and overall safety.
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 effective segregation of Assets.
Julien Vallet, CEO & co-founder, says, “Our analysis of various Proof of Reserves (PoR) statements highlighted a need for greater clarity in this area. Traditional PoR tends 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”
Additionally, the audit verified the following key points:
- Finst has policies and procedures in place to correctly safeguard its clients’ assets.
- The designated roles and responsibilities in the safeguarding procedures are fulfilled.
- A strict restriction of assets transfers to designated senior management employees is enforced.
- Clients’ assets are held in a bank account and wallets through a bankruptcy-remote vehicle, without any possibility of commingling 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, with a maximum time frame of 2 days.
- Finst’s Collateralization rate is >100% for all coins listed on its platform
- All cryptocurrencies listed on Finst’s platform have been included in the audit scope.
Vallet says, “Cryptocurrency investors rightfully deserve to know how well they are protected, especially in the wake of recent global exchange collapses. We were surprised to see that no Dutch crypto platform has ever released a Proof of Reserves, and we firmly believe that this should become standard practice. We extend an open invitation to all crypto platforms to join us in embracing this vital initiative so that we can collectively enhance the transparency and safety of the entire industry.”
Finst: Crypto platform with lowest trading fees
Founded by the ex-core team of DEGIRO, an online stockbroker in Europe, Finst aims to offer an investment platform with the lowest trading fees in The Netherlands.
Finst says investors can diversify their wealth across 30 popular digital assets, trade 24/7 in EUR (€), and monitor the market with real-time news.
Finst has partnered with the wallet management provider Fireblocks and safekeeps all its clients’ digital assets in a bankruptcy-remote custody vehicle.
Finst says its platform is suitable for active traders and long-term investors, and aims to become the largest cryptocurrency platform in Europe within five years.
Read the orginal article: https://siliconcanals.com/news/startups/amsterdams-finst-releases-por/