CoinSpot becomes first Australian Crypto Exchange to complete an external statutory financial audit
CoinSpot has announced that it has become the first Australian Crypto Exchange to complete an external statutory financial audit.
This reflects the business’ core principle, which is to ensure it provides customers with stability and the public with complete transparency.
The process of completing this type of audit is complex. CoinSpot’s financial position (including coin balances) for the 2021 financial year was audited in accordance with Australian Auditing Standards. This comprehensive and time-consuming audit was undertaken to demonstrate CoinSpot’s unparalleled dedication to uphold our stringent standards.
At the conclusion of this audit, CoinSpot received an unqualified opinion from the independent auditor that the business’s financial position for the 2021 financial year was reported fairly and in accordance with the Australian Accounting Standards. An unqualified opinion is the highest possible level of assurance under Australian Auditing Standards.
This Australian-first and globally recognised audit sets CoinSpot apart from most other trading platforms.
“We see the prospect of greater accountability in the crypto-asset space as a good thing,” said Don Henricus, CoinSpot’s Chief Operating Officer.
“Centralised crypto platforms have been in the media a lot lately with negative stories, particularly around lending and not keeping their customers’ funds safe. CoinSpot’s focus will always remain on best practice security for our customers’ assets, as our top priority. As the number of customers on the CoinSpot platform grows, there is an increasing demand for regulation and transparency, and we aim to continue to fulfill customer needs safely.”
As the popularity of trading crypto increases, so does the growing demand for regulation from within the industry, platform customers, and analysts. The Financial Planning Association of Australia (FPA) recently announced in a submission to Treasury that it supports a regulatory framework for crypto assets – provided it’s consistent with their equivalent non-crypto versions.
Like any investment, trading crypto comes with some risks. What CoinSpot ensures is that there are no unnecessary risks for customers. The platform proactively addresses this through clear communication with the CoinSpot community and by maintaining its status as Australia’s most secure and trusted cryptocurrency trading platform.
“Any platform offering returns on BTC is risking their customer’s assets by lending them out to other external parties – this is an added risk for the end customer,” said Henricus.
“CoinSpot has made a conscious decision to not partake in those practices and instead opted for ensuring we have the inventory necessary to facilitate buys and sells as they are represented on the platform.”
This means that unlike some other crypto platforms, market fluctuations don’t impact CoinSpot’s ability to enable customers access to their crypto.
Therefore, traders can engage via CoinSpot with complete confidence that crypto assets are available as displayed and all kept one-to-one.
“The future of crypto is essentially in the hands of those companies that pursue accountability. As is the case with any emergent industry or space, not every contributor is acting with good intentions or clear motives – and we believe it is vital for us to undertake these processes to institute trust, setting a benchmark for crypto exchanges globally,” added Henricus.
“We encourage other platforms to undertake similar audits to continue improving consumer confidence and market strength.”