RICHARD TENG ANSWERS QUESTIONS ABOUT BINANCE RESERVES
The reasons for these good results are of course an influx of capital deposited on the platform by customers, but it is above all the rise in cryptocurrency prices which explains and Binance also confirms this.
But the question of exchange reserves immediately entered the debate and some observers criticize the calculation methods, while others highlight the fragility of the regulations in this area. Regarding the Proof of Reserves published by Binance and the doubts raised by some of its detractors, the boss affirms that the overall figures do not constitute a perfect representation of user funds but an approximation which can be verified and more precise by the PoR [ proof of reserve]* monthly.
*PoR: Proof of reserve is the action for a financial entity to prove that it holds sufficient funds to satisfy the withdrawals and deposits of all its customers
Finally, despite these quantified guarantees, regulatory gray areas remain regarding the obligations of platforms in the event of bankruptcy and the possible recourse of customers concerning their funds. It is not for nothing that the debate around the nature of cryptoassets still rages in Washington and that all professionals are calling for a legal framework adapted to this new, booming sector.
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