Crypto News– For a cryptocurrency investor, gaining access to dependable insights regarding an exchange’s reserves and overall security should be the standard practice.
Finst Achieves Milestone as First Dutch Crypto Platform to Unveil Comprehensive Proof of Reserves
Within just 8 months since its inception, the company has emerged as the pioneering and sole Dutch cryptocurrency platform to reveal an extensive Proof of Reserves assessment, meticulously conducted by AuditNow—an esteemed and impartial Dutch audit firm.
Guided by the expertise of AuditNow’s CEO, Daniël Waknine—an esteemed member of the World Compliance Association and a professional with a history of collaborations with distinguished entities like BNP Paribas and ING Holding—the audit has been executed with precision.
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.
As an integral facet of its Proof of Reserves evaluation, Finst has formulated a comprehensive framework designed to unveil complete transparency encompassing its organizational structure, operational procedures, assets, liabilities, business undertakings, and overall security measures. Unlike conventional Proof of Reserves audits that often center solely on an exchange’s on-chain holdings, the approach extends further. It encompasses a broader scope, incorporating various crypto assets while also encompassing the assessment of cash reserves and liabilities. Moreover, this innovative framework is engineered to assess the effectiveness of asset segregation—imperative for ensuring optimal security by averting any commingling of assets.
The Results Arising from Finst’s Proof of Reserves Assessment
Finst, through meticulous examination, has been shown to uphold a complete reserve system (1:1) for safeguarding its clients’ assets, further supported by an efficient asset segregation mechanism administered via a bankruptcy-remote entity. The audit process rigorously ascertained and verified essential aspects:
- Finst has in place robust policies and procedures that ensure the proper protection of clients’ assets.
- The specified roles and obligations within the asset safeguarding protocols are diligently fulfilled.
- The transfer of assets to select senior management personnel is tightly controlled and monitored.
- Through the use of a bankruptcy-remote entity, clients’ assets are stored in bank accounts and wallets, absolutely preventing any mingling of funds.
- All assets belonging to clients have been amassed exclusively from user deposits, with no utilization of loans.
- No third party is authorized to access or manipulate clients’ assets.
- Clients’ assets remain entirely accessible within a maximum timeframe of 2 days.
- Finst’s collateralization rate surpasses 100% for every cryptocurrency featured on its platform.
- All cryptocurrencies made available on Finst’s platform have been meticulously included within the purview of the audit.
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).