Amsterdam-based cryptocurrency exchange Finst has become the first Dutch platform to release an extensive Proof-of-Reserves (PoR) audit, setting higher transparency standards in the crypto industry. The audit, conducted by reputable and independent Dutch audit firm AuditNow, confirms that Finst holds its clients’ assets on a full reserve basis (1:1) and has implemented effective segregation of assets.
Traditionally, PoR audits only focus on an exchange’s on-chain holdings, excluding cash reserves and liabilities. They also fail to verify if an exchange has an effective segregation of assets in place. Finst’s comprehensive framework addresses these limitations, providing full transparency on its structure, operations, assets, liabilities, business activities, and overall safety.
The audit results confirm that Finst safeguards clients’ assets correctly, fulfills designated roles and responsibilities in safeguarding procedures, enforces strict restrictions on asset transfers, and holds clients’ assets in a bankruptcy-remote vehicle without commingling funds. Additionally, all clients’ assets have been acquired through users’ deposits, without the use of any loans, and there is no transfer or use of clients’ assets by any third party.
Finst’s collateralization rate is >100% for all coins listed on its platform, and all cryptocurrencies listed have been included in the audit scope. The exchange commits to renewing its comprehensive Proof of Reserves audit every six months to ensure continuous transparency for its clients.
Julien Vallet, CEO & co-founder of Finst, emphasizes the importance of transparency and safety in the crypto industry. He invites all crypto platforms to embrace the initiative of releasing Proof of Reserves to enhance industry transparency and safety collectively.
Finst aims to become the largest and most trusted cryptocurrency platform in Europe, offering a best-in-class investment platform with institutional-grade security standards and lower trading fees. Led by the ex-core team of DEGIRO, Finst is registered as a Crypto Service Provider with De Nederlandsche Bank (DNB).
As a crypto investor, having access to reliable insights into an exchange’s reserves and overall safety should be the norm. Finst’s groundbreaking release of an extensive Proof-of-Reserves audit sets a new standard in the industry, ensuring transparency and accountability for its clients.
