• Home
  • Bitcoin News
  • Blockchain News
  • CBDC News
  • NFT News
  • New to Crypto?
  • About
  • Contact
Facebook Twitter Instagram
Todayq News
  • News
  • Bitcoin
  • Metaverse
  • NFT
  • Blockchain
  • New to Crypto
  • Contact
Twitter Facebook Instagram LinkedIn
Todayq News
News

The US SEC says proof-of-reserve audits of many Crypto firms lack sufficient information 

By Om Labde23 December 2022, 12:41 PM
The US SEC introduces a “flexible” process for tokens to register

The US Securities and Exchange Commission (SEC) is increasingly questioning the authenticity of audits conducted for cryptocurrency companies. After FTX’s collapse, several cryptocurrency firms have been trying to show that they still hold onto the assets of their users. Many people are looking for auditing companies to give their clients and potential investors third-party assurances. 

The SEC asked investors to exercise caution when using these proof-of-reserve filings, claiming they lack sufficient information. According to the SEC, some of these filings omit important financial data, despite companies complaining that doing so violates their confidentiality.

Paul Munter, the interim chief accountant, claims that the SEC is closely examining how cryptocurrency companies are presenting these audit reports. According to Munter, they are becoming more aware of what’s happening in the industry. They will consider making a reference to the division of enforcement if they discover actual patterns that they believe to be problematic. 

“We are increasing our understanding of what’s going on in the marketplace. If we find fact patterns that we think are troublesome, we will consider a referral to the division of enforcement.”

However, ,many companies do not fall within the purview of the SEC,since many of them have foreign headquarters. As a result, the SEC is essentially issuing a warning about jeopardizing the reputations of auditing firms as well as investors.

Insurance companies are either denying or significantly limiting coverage for clients connected to cryptocurrency as a result of the fall of the crypto exchange FTX. 

Due to patchy regulations and fluctuating crypto prices, insurance companies also are reluctant to provide coverage to cryptocurrency businesses. Fewer companies will now be prepared to insure asset and directors and officers (D&O) protection policies for these firms in light of the FTX bankruptcy. D&O insurance coverage is often used to pay for legal costs in the case of a lawsuit.

According to reports, the Big Four accounting firms said they were “now unwilling” to conduct an audit for a private cryptocurrency company. While these companies have said they won’t take on any more of this type of work, they haven’t said if they would cease catering to cryptocurrency users. For example, Deloitte and Coinbase, an American cryptocurrency exchange, have a long history together.

Crypto SEC USA
Share. Facebook Twitter LinkedIn Telegram WhatsApp Reddit

Comments are closed.

Must Read

The entertainment industry is welcoming Web3 with open arms

Survey: Crypto is currently the second-most owned asset by women after cash

Data: 59% of BTC holders are enjoying profits, and only 38% are running in loss

Report: Boomers are the most cautious Crypto investors

Instagram
The price of Bitcoin, after going through what the industry calls one of the worst bear markets, has been surging. Data reveals that the increasing prices have helped both short-term and long-term investors to profit.
A recent report released by eToro called the “Retail Investor Beat” indicated that although traditional asset classes struggle to encourage greater adoption among women, cryptocurrencies appear to be more successful. The eToro team surveyed almost 10,000 global retail investors across 13 nations.
The crypto industry is continuously expanding, and the events that occurred in the past year gave investors major shocks. However, they also highlighted the need for having a clearer and deeper understanding of the crypto space to navigate safely and securely.
“Full-time” developers, defined as those who contribute to 76% of Github commits, climbed by 15.2% to over 7000. In comparison, “one-time” builders decreased by 6.2% to over 3,500 over the same period between December 2021 and December 2022, according to a Jan. 16 report from Electric Capital.
Crypto by TradingView
Twitter Facebook Instagram LinkedIn
  • About
  • Careers
  • Advertise
  • Privacy
All rights reserved by Todayq Technologies PVT. LTD.

Type above and press Enter to search. Press Esc to cancel.