Months after the QuadrigaCX episode first came to light, its effects are still being felt by the crypto-verse. The whole episode highlighted the fact that despite cryptocurrency’s design for a trustless world, trust is the currency for the survival of crypto-exchanges. Following the call for increased regulation and transparency and in an effort to boost consumer confidence, fellow-Canadian exchange, Bitbuy, released its Proof of Reserve and Security Audit report.

The Canadian exchange engaged the services of Ciphertrace, an American blockchain, and cybersecurity firm, to evaluate the exchange’s solvency, crypto-storage facilities, security, team risk and its KYC/AML initiatives. The background of the report cited the fact that QuadrigaCX was improperly run, did not have access to much of its fiat holdings in 2018, and did not do its due diligence to focus the investigation on Bitbuy’s own solvency and team risk.

The report made some key findings that could go some way in improving consumer confidence in crypto-exchanges.

The report found that all fiat holdings (Custodial or otherwise) reported by Bitbuy were backed by bank statements. Further, the report addressed any solvency concerns by stating that the sum of digital assets held in Bitbuy’s cold and hot wallets matched the sum of digital assets held across Bitbuy user accounts, resulting in a 1:1 match of custodial assets.

Ciphertrace’s report made other findings as well. In an exceedingly positive appraisal, Ciphertrace reported that Bitbuy’s cold storage was “unlikely to be compromised in any way”. The report also added that Bitbuy’s liquidity accounted for “exceeded industry standards”.

Bitbuy also aced the team risk test, with Ciphertrace revealing that all background, previous employment, and ID checks for Bitbuy’s employees checked out. This evaluation was especially pertinent since QuadrigaCX made headlines after it was found that many of the people running the exchange had previously used fictitious names and aliases to pursue questionable pasts.

The Canadian exchange is presently trying to fill the void left by QuadrigaCX, which was arguably Canada’s largest crypto-exchange at its peak. Following the release of the security audit report, Bitbuy also launched its ‘Pro-Trade platform’ and an institutional grade OTC trading desk for large crypto-transactions.

The post Bitbuy releases Proof of Reserve, Security Audit report to boost ‘consumer confidence’ after QuadrigaCX episode appeared first on AMBCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

205 +