US Supervisory Authority Speaks About Reserve Reports of Cryptocurrency Exchanges!

US officials cryptocurrency He says it is not possible to fully rely on stock exchanges’ reserve reports.

According to the U.S. Public Companies Accounting Oversight Agency (PCAOB), which oversees auditing standards, one should not rely on proof-of-reserve reports routinely launched by crypto firms to reassure clients that their financial transactions are in safe hands.

US Audit Observer Says Crypto Industry Reserve Reports Can’t Be Trusted

The Public Companies Accounting Oversight Board (PCAOB), an industry-funded supervisory agency that operates under the authority of the Securities and Exchange Commission, said the reports, which count reserve assets as evidence that a company is protected against financial revolts, do not provide “meaningful assurance.”

The board said Wednesday that these are not audits and do not meet any standards.

According to the PCAOB, these verifications of assets take a simple snapshot and “do not address the liabilities of the crypto-asset, the rights and obligations of the digital asset holders, or whether the assets have been borrowed by the crypto-asset to demonstrate that they have adequate collateral.”

The board added that such documents certainly prove nothing about a company’s internal controls or governance.

“Reserve reports are limited in nature and customers should be extremely cautious when relying on them to conclude that there are sufficient assets to meet customer obligations,” the PCAOB statement said.

*Not investment advice.