Binance, the world’s largest digital-asset exchange, indicated a full audit of its assets and liabilities is some way off amid calls for more transparency following the collapse of rival FTX, Bloomberg News reported. The company’s goal is to hire an auditor for the whole balance sheet but big accountants are still learning about the crypto sector, which lacks agreed standards for challenges like price volatility, Binance’s Asia-Pacific head Leon Foong said. “It’ll take a longer time,” Foong said in an interview. “It shows you the limitations of the more traditional industries because there is a learning curve. Number one, it’s not their core competence. And number two, obviously there’s a lot of scrutiny if they get it wrong.” Binance sits at the heart of a digital-asset sector facing mounting pressure for greater openness after FTX went bankrupt with an $8 billion hole in its finances. While Binance argues crypto audits are challenging, others point to Nasdaq-listed Coinbase Global Inc.’s annual statements by Deloitte as evidence that they can be done by major accountants. In December, Binance released a so-called proof-of-reserves report based on a snapshot review by accounting firm Mazars Group. The step was part of an effort to try and reassure about customer assets. The report didn’t amount to a full financial audit and Mazars later suspended work for crypto outfits.
