Mazars Group, the company responsible for auditing Binance and Crypto.com, has announced that it will suspend its work with cryptocurrency businesses. According to a spokesperson at Binance, Mazars has indicated that it will pause its work with all of its global crypto clients, including Binance, Crypto.com, and KuCoin.
The need for audit reports from reputable auditing firms became necessary after the recent collapse of the FTX exchange, which sent shockwaves through the cryptocurrency community and caused many investors to question the stability and transparency of other exchanges.
In response to these concerns, several exchanges, including Binance, KuCoin, and Crypto.com, decided to take proactive measures to ensure the trust of their customers.
One such measure is the release of an audit report detailing the assets and liabilities of the exchange. This report, provided by the reputable audit firm Mazars, assisted in providing investors with a clear understanding of the exchange’s financial health and stability.
This news comes on the heels of an interview with Binance CEO Changpeng Zhao (CZ) on CNBC’s SquawkBox, in which he highlighted the challenges that many auditing firms face when working with cryptocurrency businesses. CZ noted that many of these firms are hesitant to work with crypto companies and may struggle to produce accurate and competent reports for blockchain-based firms.
The temporary suspension of Mazars’ work with crypto clients will likely be a blow to these companies, as auditing is critical to ensuring transparency and trust in the financial sector. However, it remains to be seen how long this pause will last and whether other auditing firms will step in to fill the gap.
Mazars has not yet released a statement on the reason for the suspension, but the firm is likely taking a cautious approach to the rapidly-evolving world of cryptocurrency. As the use of digital currencies becomes more widespread, it is imperative that proper regulations and audit standards be put in place to ensure the integrity of the market.
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