Binance, the leading cryptocurrency exchange, has hired U.K.-based Grant Thornton's Singapore division to advise on accounting and tax matters. This move comes after Binance's previous auditing firm, Mazars, paused its work on proof-of-reserves reports for crypto clients, citing concerns over public misunderstanding of these reports.
Grant Thornton, which has previously worked with stablecoin issuer Circle, will help Binance navigate technical accounting, financial reporting, audit preparedness, and tax matters. This development underscores the growing demand for crypto exchanges to provide regular proof-of-reserves reports to ensure transparency and rebuild trust in the industry after the collapse of FTX.
However, Mazars claimed that proof-of-reserves reports only provide a snapshot of an exchange's balance sheet, leaving potential loopholes for companies. As a result, clients are now asking crypto exchanges to provide full financial audits. Binance stated that Grant Thornton will assist the exchange in preparing for such a comprehensive audit, but will not act as the exchange's auditor.
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