The collapse of the prominent cryptocurrency exchange, FTX, has caused the public to lose trust in the crypto sector. Bitso, a Mexican cryptocurrency exchange platform, has made a move towards curing this loss of integrity.
The platform’s move was to plan and execute a crypto transparency plan. This transparency plan is to reassure the cryptocurrency community so that the community can trust centralized crypto exchanges again.
Recently, Reuters released a report stating that Bitso is one of the few virtual asset service providers trying to calm down the now doubtful cryptocurrency community following recent happenings in the sector.
The Luna crisis and the recent collapse of the FTX crypto exchange (one of the biggest global crypto exchanges) have considerably dampened investors’ confidence in centralized exchanges.
The chief regulatory officer (CRO) of the exchange platform, Felipe Vallejo, told news platforms that the firm plans to release a report of the company’s long-term debts. Vallejo said the report would include financial obligations (solvency report) for each month.
The CRO added that Bitso would release the report with the collaboration of an external audit partner. However, he remarked that the firm has not yet chosen the audit partner.
Also read:Additionally, the chief regulatory officer said that some other crypto firms’ published proof of funds is incomplete. The reason is that they only provide details on assets but do not display how much crypto funds it owes users using their platform.
Binance And Coinbase Releases Financial Data For Transparency
Nevertheless, other prominent crypto exchanges (particularly Binance and Coinbase) have taken similar approaches. Binance, one of the world’s leading crypto exchanges, released an announcement last week.
The exchange released its proof of reserve(PoR) and said it is a step in the firm’s efforts to promote user-fund transparency. The controversial crypto exchange released its PoR using the Merkle tree tool.
A Merkle tree is a cryptographic tool that makes it possible to compress a large amount of data into a singular hash. In addition, Merkle trees also serve to encode blockchain data with greater efficiency and security.
Similarly, Coinbase’s chief executive officer, Brian Armstrong, issued a letter to the company’s stockholders. This letter comprises details of the company’s financial report for the previous quarter.
According to the data, Coinbase’s BTC holdings are approximately 2 million.
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