Among the biggest cryptocurrency exchanges by trading volume, Binance, issued an audit by global financial auditing, tax, and advisory firm Mazars showing that its customer bitcoin (BTC) reserves are overcollateralized.
Mazars observed Binance controlled assets in-scope exceeding 100% of their total platform liabilities at the time of their assessment. There was an exact percentage of 101%.
Rivals are scrambling to improve the transparency of their financial reserves following the collapse of centralized crypto exchange FTX due to liquidity issues.
Mazars’ report assured customers that their bitcoin was collateralized, existed on the blockchain, and wasBinance’s control. In order to carry out a collateralization analysis, Mazars took a snapshot of Binance’s total reserves and liabilities on Nov. 22. In addition to BTC and wrapped bitcoin, the assets included spot, options, margin, futures, funding, loans and earn accounts held on Blockchains Bitcoin, Ethereum, BNB Chain, and Binance Smart Chain.