HomeNewsBinance's Reserve Audit Reveals Crypto Holding Increases Despite Regulatory Hurdles

Binance’s Reserve Audit Reveals Crypto Holding Increases Despite Regulatory Hurdles

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  • Binance’s audit reveals increases in Bitcoin and Ethereum reserves, enhancing trust and transparency among its users.
  • Despite positive growth, Binance faces accusations from the Nigerian Central Bank of improper financial activities and anonymity.

Binance’s recent audit showcases a rise in Bitcoin and Ethereum reserves, signaling positive user engagement despite broader challenges. This update is critical for verifying the financial health of one of the world’s largest cryptocurrency exchanges. 

As Binance unveils its 20th proof of reserves report, there’s a noticeable increase in Bitcoin holdings by 4.01% and Ethereum by 1.01% since early June. However, Tether holdings saw a decrease of 2.54%.

proof of reserves report
Source: Binance

As explained in our last analysis, regular issuance of these reports is important, enhancing user trust by affirming the exchange’s solvency and the secure storage of cryptocurrencies. Such transparency not only reassures current users but also potentially attracts new participants to store and transact on the platform.

Source: Santiment

Amidst these analysis developments by ETHNews, Binance confronts regulatory challenges, particularly from the Central Bank of Nigeria (CBN). The CBN’s deputy director, Olubukola Akinwumi, accuses Binance of engaging in financial activities typically reserved for banks, utilizing pseudonyms for user transactions.

This practice allegedly contravenes CBN’s directives demanding full identity disclosure in financial dealings.

Moreover, the peer-to-peer platform on Binance, which allows direct user transactions involving Nigeria’s fiat currency, the Naira, has come under scrutiny. Such operations could potentially breach local financial regulations, impacting Binance’s operations and reputation within the region.

Despite these regulatory hurdles, the Binance token (BNB) maintains market presence, although it experienced a slight decline of 0.73% in the last day. The surrounding social volume spiked, but a downturn in weighted sentiment suggests growing concerns or negativity among commentators regarding BNB.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628