The American regulator will strengthen the verification of cryptocurrency auditors

The U.S. SEC has said it will step up scrutiny of auditors working with crypto-currency companies over concerns that false information may be provided to investors. The US Securities and Exchange Commission (SEC) has announced the need to tighten supervision of audit companies that report on the reserves of cryptocurrency firms. After the crash of the FTX exchange, many trading platforms began to publish reports on the status of their reserves in order to reassure clients of the safety of their funds and the stability of their work.. The regulator fears that auditors' reports may instill false confidence in investors, exposing them to the risk of losing funds when investing in crypto assets. “We are cautioning investors to be wary of statements made by crypto companies,” Acting SEC Chief Accountant Paul Munter said in a statement. Given the lack of clear regulatory rules for regulating cryptocurrencies, many banks and accounting firms are refusing to work with crypto-currency companies.. So, last week, the Mazars auditor, registered in France, stopped providing services for the Binance, and KuCoin cryptocurrency exchanges, removing links to previously published reports.. The audit company Armanino, which previously worked with FTX, also stopped working with the OKX and trading platforms. For this reason, the SEC issued warnings to audit firms that audit the reserves of cryptocurrency platforms.. The agency believes that crypto exchanges use auditors' reports to their advantage, and the main danger is that auditors operate with limited financial data to assess whether a company has sufficient assets to cover its obligations. SEC Chairman Gary Gensler Says Investors Will Be Exposed to Crypto Asset Risks Until Virtual Asset Service Providers (VASPs) Comply With Time-Tested Securities Laws. Gensler is convinced that the cryptocurrency market should be regulated on a par with the stock market.