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Pushing For Transparency: Binance Just Released Proof Of Reserves System

source-logo  cryptogazette.com 26 November 2022 04:17, UTC

It’s been reported that in light of the latest events involving FTX, Binance is now making efforts for increased transparency along with other important crypto exchanges such as Coinbase. Check out the latest reports below.

Binance makes important moves toward fund transparency

Global crypto exchange giant Binance has been working hard to release a proof of reserves (PoR) system to increase transparency following the FTX implosion.

The crypto exchange made sure to explain they are committed to disclosing proof of reserves. In other worlds, the exchange has been working on releasing evidence of a one-to-one ratio of reserves to investors’ assets.

“Following our recent announcement outlining our commitment to transparency, Binance is releasing its Proof of Reserves (PoR) System, which is the next step in our effort to provide transparency on user funds.”

Binance is first releasing Bitcoin (BTC) data. But it’s also worth noting the fact that they plan to release proof of reserves data for other tokens including Ethereum (ETH).

As the online publication the Daily Hodl notes, “Binance says they have a 101% ratio of Bitcoin holdings to customer holdings with an on-chain reserve of 582,485 Bitcoin to their customer net balance of 575,742 Bitcoin, as of 23:59 UTC on November 22, 2022.”

It’s also worth noting that Binance explained the fact that the data does not reflect its own corporate funds.

“When a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure client funds are fully backed. It is important to note that this does not include Binance’s corporate holdings, which are kept on a completely separate ledger.”

More crypto exchanges have decided to take similar steps. For instance, the other day, we revealed that the crypto exchange OKX has just launched a new proof-of-reserves system. From now on, users will have the ability to verify their assets.

The crypto exchange OKX is launching a new proof-of-reserve system. It’s important because this enables customers to verify their digital assets.

The Seychelles-based firm says the OKX Proof of Reserves (PoR) will provide a means for users to verify that their funds are backed 1:1 by real assets. This is really comforting for the people in the crypto space, especially following the disaster involving FTX.