Finst becomes first Dutch cryptocurrency platform to release an extensive Proof of Reserves

Amsterdam, Netherlands, August 22nd, 2023, Chainwire


  • Amsterdam-based cryptocurrency exchange Finst announces the successful release of its Proof of Reserves (PoR) conducted by a reputable and independent audit firm
  • Finst’s extensive 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, which will be renewed at least every 6 months, confirmed that Finst holds its clients’ assets on a full reserve basis (1:1) and has implemented an effective segregation of assets.

As a crypto investor, getting access to reliable insights into an exchange’s reserves and overall safety should be the norm. 8 months only after its launch, Finst becomes the first and only Dutch cryptocurrency platform to unveil an extensive Proof of Reserves audit conducted by AuditNow, a reputable and independent Dutch audit firm.

The audit was skillfully led by AuditNow's CEO, Daniël Waknine, a distinguished member of the World Compliance Association who has previously been collaborating with esteemed institutions such as BNP Paribas and ING holding.

As part of its Proof of Reserves audit, Finst has developed a comprehensive framework which provides full transparency on its structure, operations, assets, liabilities, business activities and overall safety.

Challenging traditional Proof of Reserves limitations

Traditional Proof of Reserves audits merely focus on an exchange's on chain holdings, with a scope often being limited to certain crypto assets, thus excluding the cash reserves of an exchange and its liabilities. Besides, traditional PoR audits do not verify whether an exchange has an effective segregation of assets in place, which is key in providing maximum safety as it prevents commingling of assets.

Julien Vallet, CEO & co-founder, commented: "Our analysis of various Proof of Reserves (PoR) statements highlighted a need for greater clarity in this area. Traditional PoR tend to leave important questions unanswered for investors, which is why we decided to develop a new standard which goes far beyond the verification of on-chain holdings."

The outcome of Finst’s Proof of Reserves audit

The results of this thorough and independent audit confirmed that Finst holds the entirety of its clients’ assets on a full reserve basis (1:1) and has an effective segregation of assets in place through a bankruptcy-remote vehicle. 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

The exchange also confirmed that it will renew its comprehensive Proof of Reserves audit at least every 6 months to ensure continuous and transparent information for its clients.

Julien Vallet, added: “Cryptocurrency investors rightfully deserve to know how well they are protected, especially in the wake of recent global exchanges 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 a 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.”

To learn more, please read the Proof of Reserves statement (EN).

About Finst

Finst is the fastest-growing cryptocurrency exchange in The Netherlands and offers a best-in-class investment platform together with institutional-grade security standards and 82% lower trading fees. Finst is led by the ex-core team of DEGIRO and is registered as a Crypto Service Provider with De Nederlandsche Bank (DNB). Finst aims to become the largest and most trusted cryptocurrency platform in Europe by enabling retail investors to benefit from the same opportunities and tools as professional traders. For more information visit www.finst.com.


Contact
CEO
Julien Vallet
Finst
press@finst.com
+31202417161

Comments

Post a Comment

Popular posts from this blog

Immutable and MetaStudio Announce Partnership to Enhance the Gaming Metaverse

Image
Braga, Portugal, May 22nd, 2023, Chainwire MetaStudio , a renowned Portuguese game studio, has announced a new partnership with Immutable , a leading Ethereum Layer 2 scaling solution provider, aimed at transforming the gaming metaverse. MetaStudio has been recognized for its innovative games and games-as-a-service offerings, along with their unique non-fungible token (NFT), Rune Realms , which offers holders a chance to partake in a 10% revenue share in the studio's earnings. By integrating with Immutable's Layer 2 blockchain infrastructure, MetaStudio can provide players with a dynamic gaming experience and unique benefits such as zero gas fees for peer-to-peer trading and secure ownership of in-game assets. Immutable is an ideal partner for us," said Carlos Domingues, CEO of MetaStudio. "Their Ethereum Layer 2 solution enables us to offer our players genuine ownership of their in-game assets and the ability to profit from their gameplay. And their upcoming passport...
Read more

Bitcoin $30K bets greet FOMC as analyst warns over long liquidations

Image
Bitcoin may celebrate no matter what the Fed decides on interest rates, but the extent of longs that would be liquidated below $20,000 has one analyst worried. Bitcoin (BTC) may “take out shorts” to crack $30,000 during the day’s key United States macroeconomic policy updates, analysis says. As bets pile up over how BTC price will react to the Federal Reserve’s decision on interest rates, $30,000 is in sight — but a drop to below $20,000 is not off the table. Trader plans $30,000 profit-taking Bitcoin is hours away from what popular trader Crypto Tony calls “one of the most anticipated” Fed meetings ever. The Federal Open Market Committee (FOMC) will decide on how to tweak baseline Interest Rates on March 22, amid suspicions that the ongoing U.S. banking crisis has disrupted policy. From ongoing rate hikes forecast just last month, Markets are now considering the chances that the Fed will pause the cycle, data from CME Group’s FedWatch Tool shows. Fed target rate probabilities chart. ...
Read more

Bitcoin payments exec shares adoption challenges in the Philippines

Image
Pouch founder Ethan Rose said that they've managed to convince 400 businesses to accept Bitcoin in the Philippines. As many developments within the space show how far the Bitcoin (BTC) community has come, an executive from a BTC payment provider shared how in other parts of the world, adoption may still be in its early stages.  At the BTC Prague event, Cointelegraph reporter Joseph Hall interviewed Ethan Rose, the founder of Pouch, a wallet service that supports the Bitcoin Lightning Network in the Philippines. The duo spoke about the state of adoption in the country and how the Pouch team is trying to introduce Bitcoin to merchants on the island of Boracay, a popular tourist hotspot in the country.  According to Rose, their team has already managed to onboard around 250 businesses within the island and 400 businesses in the country. Their team is working to promote Bitcoin adoption in the country by offering merchants another way to attract customers. “They're not really...
Read more