The Argument for Quarterly Audits in Crypto Exchanges

[Wakanda]

Introducing quarterly audits for crypto exchanges could substantially enhance transparency and cultivate trust among users. Drawing parallels with the traditional banking sector's practice of quarterly audits to evaluate gains and devise strategies, regular audits within the crypto sphere could offer valuable insights into an exchange's performance trajectory.

The downfall of FTX serves as a stark reminder, illustrating the repercussions of continual spending without adequate documentation of an exchange's true value. By conducting audits every quarter, exchanges can mitigate such risks and uphold accountability in financial operations.

The unveiling of Bitget's Q1 report, spotlighting their growth, emphasizes the importance of furnishing users with a holistic view of an exchange's progress over time. This transparency empowers users to make well-informed decisions regarding their choice of exchange.

In my view, quarterly audits would enable users to evaluate an exchange's performance and make informed decisions about its dependability. I'm interested in hearing your thoughts on this proposal.