SEC criticized the idea of a PoR audit of cryptocurrency exchanges

The SEC commented on the results of auditing the reserves of some exchanges. The department believes that this is only a “beautiful picture” that has nothing to do with the real financial situation of a particular company. Populists, only populists around Earlier, we reported that Binance became the first crypto exchange where the concept of Proof of Reserves was implemented. Several other companies followed suit, seeking to reassure investors in the wake of the FTX crash. The results of the audit were severely criticized. First the audience, and then the journalists, ridiculed the allegedly truthful report on the reserves. And then the company that conducted the check refused further cooperation with crypto exchanges in general. Trust but VerifyYesterday, December 22, the WSJ published an interview with Acting SEC Chief Auditor Paul Munter.. Among other things, the reporter clarified with him the position of the regulator regarding the introduction of the Proof of Reserves concept by exchanges. The official responded with the following: “We warn investors to be wary of some of the claims made by crypto companies.” Munter further clarified that the result of the audit is not an indicator of the stability of a particular exchange.. The published reports simply lack information regarding the state of assets. In the event that the SEC finds certain “unpleasant facts”, it will take appropriate sanctions against individual firms. At the same time, Munter himself, before that, at a conference in Washington on December 12, expressed concern about the further development of the structure of crypto companies.