In a groundbreaking move for the Dutch cryptocurrency landscape, Finst has emerged as the pioneering platform to introduce an extensive Proof of Reserves (PoR) audit. Merely eight months since its inception, Finst stands as the sole Dutch crypto exchange to unveil this audit, conducted by the reputable and independent Dutch audit firm, AuditNow.
The PoR audit, spearheaded by Daniël Waknine, CEO of AuditNow, and a distinguished member of the World Compliance Association, marks a significant milestone. Waknine's experience collaborating with esteemed institutions such as BNP Paribas and ING Holding underscores the audit's credibility.
Unlike traditional PoR audits that often focus solely on on-chain holdings, Finst's approach challenges limitations. The platform's comprehensive framework ensures complete transparency, encompassing its organizational structure, operational processes, assets, liabilities, business activities, and overall safety.
Julien Vallet, CEO & co-founder of Finst, expressed the motivation behind this innovative approach: "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 audit's results reinforce Finst's commitment to maintaining a full reserve basis (1:1) for its clients' assets, bolstered by effective asset segregation through a bankruptcy-remote vehicle. Key findings of the audit include the implementation of policies and procedures for safeguarding clients' assets, the fulfillment of designated roles and responsibilities within safeguarding protocols, enforced strict limitations on assets transfers to senior management employees, utilization of a bankruptcy-remote vehicle to hold clients' assets, preventing commingling, exclusive acquisition of clients' assets from user deposits, excluding loans, absence of third-party transfer or use of clients' assets, maximum availability of clients' assets within a 2-day timeframe, collateralization rate exceeding 100% for all platform-listed coins, and inclusion of all platform-listed cryptocurrencies in the audit scope.
Furthermore, Finst commits to maintaining transparency and client reassurance by renewing its comprehensive Proof of Reserves audit every six months. Julien Vallet emphasized the importance of this initiative within the cryptocurrency sector: "Cryptocurrency investors rightfully deserve to know how well they are protected, especially in the wake of recent global exchange 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."
Finst's proactive approach sets a new precedent for the Dutch crypto ecosystem, inviting other platforms to join in elevating transparency and safety standards. With its commitment to empowering retail investors and ensuring a trusted crypto environment, Finst aims to further solidify its position as Europe's largest and most reliable cryptocurrency platform.