TechFlow news — Finst, a cryptocurrency exchange headquartered in Amsterdam, announced that an independent auditing firm has completed its reserve audit. This marks the first comprehensive reserve audit report aimed at addressing the limitations of traditional audits and setting higher transparency standards for the crypto industry.
Finst's reserve audit verifies not only on-chain assets but also examines cash reserves, liabilities, and asset segregation measures. Finst stated that this approach is more thorough than merely validating on-chain holdings, offering greater reassurance to investors.
The audit confirmed that Finst holds customer assets at 1:1 full reserve and effectively segregates assets through bankruptcy-remote vehicles. The report will be updated every six months to ensure ongoing transparency.
Finst's CEO emphasized the importance of letting investors understand how well their assets are protected. They expressed surprise that no other Dutch exchange has yet published a reserve audit, stating that this should become standard practice. They welcome all platforms to join this initiative to enhance transparency and security across the industry.
