Auditors, a very closed circle – Audit and backup test. The mantras of crypto companies, exchanges and stablecoin issuers. All the more with the crisis of confidence of the last few months. Circle (USDC) takes the opportunity to move on from his longtime partner Grant Thornton to the behemoth Deloitte. All the details.
Circle – Deloitte: an exceptional partnership
Circle, famous issuer of the USDC stablecoin, direct competitor of USDT Of To tie, enters into a partnership with Deloitte. Enjoying the favor of Coinbase, the cryptocurrency exchange behind Circle, he will therefore be responsible for itcheck reserves. As you may know, in order to issue 1 USDC on the blockchain, Circle needs to demonstrate that it has the equivalent 1 dollar in its coffers. Otherwise, it means that money is created out of thin air and this is obviously prohibited by law. At least, when we’re not a central bank.
And the news is great. Indeed, until now, those who are called the The big four – Deloitte, Ernst & Young, KPM extension And PricewaterhouseCoopers – the four auditing giants, seemed reluctant to set foot in the cryptocurrency sector. Now it’s done for one of them – and not least: Deloitte. It must be said that Circle is not just any crypto company either. The company has always shown its proximity to regulation. Regularly promoting transparency and full compliance with applicable regulations.
A partnership that could give new impetus to the crypto sector to rebuild the trust that has crumbled in recent months. The transparency and proof of reserve they will most likely be the buzzwords for many more months. And that may not be so bad for investors.
“Our pioneering history of transparency underscores our commitment to providing our USDC holders and the public with regular, searchable reports on how we are minimizing risk and maintaining the liquidity of our reserves. »
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Accounting firm fleeing the cryptocurrency sector?
Circle, too issuer of the euro stable currency, EUROC, so far in partnership with the Grant Thornton firm for these previous audits, has therefore changed contact. This replacement comes as different audit firms expressed their reluctance continue operating in the realm of cryptocurrencies. Some they let the industry down completely.
This is the case with well-known audit firms such as Mazars, BDO or even Armanino. Up to now she has dealt in particular with Mazars Proof of reserve audits exchanges KuCoin, Binanza And crypto. com. What worries them, they say, is not so much the cryptocurrency industry itself, but the public’s view of it,” how these relationships are understood by the public “.
Circle thus manages to stand out as an exception in this period of general distrust and denigration. Those who however they recently failed their IPO long planned through a Special Purpose Acquisition Partnership (SPAC).
could be the imminent arrival of a generalized regulatory framework he will succeed in restoring credibility to a sector which, for the moment, leaves investors from all over the world in doubt. An area in which stablecoins will certainly be at the forefront.
“The first point of attention of the congress [en ce qui concerne la régulation] it will undoubtedly be the stablecoins. »
Katherine Dowling, Commercial Director of Bitwise Asset Management
Despite this great partnership between Circle and Deloitte, the situation is therefore less than ideal for the cryptocurrency sector in these difficult times. Again, the incessant criticism that the media like to broadcast to create buzz, without trying to get to the heart of the matter, harm the entire ecosystem. It will still take a long time for the core values of this technology, supported by major efforts to educate the population, be able to overcome prejudices.
Bitcoin and cryptocurrencies are here to stay and will change the landscape of the economy, everyone agrees. For your part, do not delay too long and go register on AscendEX. Take advantage of the 10% reduction on trading commissions (commercial link, see conditions on the site).