The largest cryptocurrency exchange in the world by trading volume, Binance, <a href="https://veritas.mazars.com/binance/" target="_blank" rel="nofollow noopener">revealed</a> on Wednesday that its client <a href="https://www.cryptoknowmics.com/news/a-beginners-guide-on-bitcoin-and-its-advantages">bitcoin (BTC)</a> reserves are overcollateralized in a new study from the international financial audit, tax, and advisory company Mazars.
<h2>Binance Overcollateralized Reserves</h2>
In a statement, Mazars stated that at the time of the evaluation <a href="https://www.cryptoknowmics.com/news/binance-custody-to-safekeep-wemades-wemix-cryptocurrency">Binance</a> controlled in-scope assets that exceeded 100% of their total network liabilities. The precise proportion was 101%.

Rivals are hurrying to increase the transparency of their cash reserves in response to the demise of the controlled cryptocurrency exchange <a href="https://www.cryptoknowmics.com/news/nexus-expects-loss-on-maple-credit-pool-invest-as-ftx-contagion-spreads">FTX</a> due to liquidity problems. Customers were to be reassured by the Mazars assessment that their bitcoin was securitized, was present on the <a href="https://www.cryptoknowmics.com/news/tether-releases-offshore-chinese-yuan-cnht-on-tron-blockchain">blockchain</a>, and was under Binance's management.
<h2>No Use of Tether Report</h2>
Francine McKenna, a specialist in accounting information at The Wharton School of the University of Pennsylvania, claims that the evaluation is not a formal audit. They compared the balances for each public key address using a list they obtained from management. They didn't compare balances held by independent banks, custodians, or depositories.

The USDC or <a href="https://www.cryptoknowmics.com/news/tether-confirms-zero-exposure-to-genesis-global-or-gemini-earn">Tether</a> report is more useless than this, she said. The <a href="https://www.cryptoknowmics.com/news/crypto-control-strategy-of-sec-chair-under-scrutiny-as-ecosystems-fall">U.S. Securities and Exchange Commission (SEC)</a> charged Friedman LLP, a New York-based accounting company, in September with repeated breaches of federal securities laws and inappropriate professional behavior, and the auditor has assessed a $1 million punishment. Friedman LLP audited Tether, the stablecoin's issuer, in 2017. In August, Tether appointed BDO Italia to handle its recurring attestation reports.
<h2>Study on Binance</h2>
On November 22, Mazars performed a collateralization study on Binance's overall reserves and liabilities. Customers' spot, options, margin, futures, financing, loan, earn and wrapped bitcoin accounts stored on the Bitcoin, Ethereum, <a href="https://www.cryptoknowmics.com/news/national-bank-of-kazakhstan-nbk-to-test-bnb-chain-for-digital-currency">BNB Chain</a>, and Binance Smart Chain blockchains were among the assets included.

Binance's Bitcoin Reserves Are Overcollateralized: Report

Binance revealed that its client bitcoin reserves are overcollateralized in a new study from the foreign financial audit, tax, and advisory company Mazars.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Binance's Bitcoin Reserves Are Overcollateralized: Report

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