Friday, December 9, 2022
 

Mexican Crypto Exchange Bitso to Post Solvency Report Next Month

  • Bitso has yielded to the demands of users to release its solvency status.
  • Binance, Coinbase, and KuCoin have published specific details of users’ funds under their watch.
  • However, Bitso’s chief regulatory officer thinks the platforms need to do more.

According to a senior representative who spoke to Reuters, the Mexican crypto exchange Bitso has yielded to the demands of users to release a transparency roadmap detailing its solvency status.

The report noted that Bitso would publish a solvency report in less than a month, and the exchange is currently selecting an external partner to conduct the audit. This development comes after the former second-largest crypto exchange went bankrupt, sparking a need for existing asset managers to show proof of customer funds.

Binance, Coinbase, and KuCoin are among the significant crypto marketplaces that have published specific details of users’ funds under their watch. However, Bitso’s chief regulatory officer, Felipe Vallejo, thinks these platforms need to do more.

Vallejo said:

The proofs of funds published by some companies are insufficient since they only show assets and do not reflect how much crypto or money it owes its users.

Notably, the recent collapse of FTX has brought forward more substantial debates on crypto asset regulations. Senator Elizabeth Warren of the United States recently told regulators that given the implosion of FTX, either they regulate the activities of the crypto industry or the economy would go down.

According to Warren, the ‘dangerously delusional’ claims of the financial scams that failed in the previous 14 years also apply to crypto. Reportedly, Brazilian lawmakers are accelerating the regulation of crypto, and it is anticipated that the US Congress will take action in the industry next year.

Bitso’s chief regulatory officer believes well-constructed rules could be an advantage, removing bad actors from the ecosystem.

  • Bitso has yielded to the demands of users to release its solvency status.
  • Binance, Coinbase, and KuCoin have published specific details of users’ funds under their watch.
  • However, Bitso’s chief regulatory officer thinks the platforms need to do more.

According to a senior representative who spoke to Reuters, the Mexican crypto exchange Bitso has yielded to the demands of users to release a transparency roadmap detailing its solvency status.

The report noted that Bitso would publish a solvency report in less than a month, and the exchange is currently selecting an external partner to conduct the audit. This development comes after the former second-largest crypto exchange went bankrupt, sparking a need for existing asset managers to show proof of customer funds.

Binance, Coinbase, and KuCoin are among the significant crypto marketplaces that have published specific details of users’ funds under their watch. However, Bitso’s chief regulatory officer, Felipe Vallejo, thinks these platforms need to do more.

Vallejo said:

The proofs of funds published by some companies are insufficient since they only show assets and do not reflect how much crypto or money it owes its users.

Notably, the recent collapse of FTX has brought forward more substantial debates on crypto asset regulations. Senator Elizabeth Warren of the United States recently told regulators that given the implosion of FTX, either they regulate the activities of the crypto industry or the economy would go down.

According to Warren, the ‘dangerously delusional’ claims of the financial scams that failed in the previous 14 years also apply to crypto. Reportedly, Brazilian lawmakers are accelerating the regulation of crypto, and it is anticipated that the US Congress will take action in the industry next year.

Bitso’s chief regulatory officer believes well-constructed rules could be an advantage, removing bad actors from the ecosystem.

 

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