KuCoin's 32nd Consecutive Proof of Reserves Sets New Standard

Cryptocurrency exchange KuCoin published its 32nd consecutive monthly Proof of Reserves (PoR) report on July 10, 2025, verified by independent auditor Hacken, confirming that the exchange maintains over 100% asset coverage for liabilities. This consistent transparency initiative provides KuCoin with a significant competitive advantage following the November 2022 FTX collapse, which triggered a crisis of confidence in the industry when it was revealed that FTX secretly misused billions in customer funds, leading to the emergence of a new transparency standard for crypto exchanges.

Industry transparency has now transformed into a competitive battlefield where exchanges strive to win user trust through different approaches—KuCoin emphasises consistency with 32 consecutive monthly audits, while OKX competes with advanced zk-STARK proof technology, and Kraken offers more detailed reporting including liabilities from margin and futures trading. A 2023 study revealed that only 15% of crypto exchanges meet full reserve verification criteria, and it's important to understand the limitations of PoR reports as well—they are merely point-in-time snapshots, not comprehensive financial audits, and fail to reveal potential off-chain liabilities or corporate debt that could still bankrupt a company.

KuCoin's PoR reports significantly impact the regulatory landscape, particularly in Asia, where adherence to high security standards helps the exchange obtain regulatory licenses in an increasingly competitive market. KuCoin's transparency initiative also serves as a model for Decentralized Autonomous Organizations (DAOs) that need to establish strong security and compliance standards, as well as for small and medium-sized enterprises in Europe for whom reliable cryptocurrency payroll solutions are essential; as regulatory pressure grows worldwide, KuCoin's continuous audits signal that the exchange aims to remain at the forefront of compliance, and this resilience can help navigate regulations such as MiCA (Markets in Crypto-Assets).

Sources:

Proof of Reserves: Has Crypto Really Changed Since FTX Collapse? - Coinspeaker

Major crypto exchanges adopt Proof-of-Reserves audits after FTX collapse, but transparency tool has limits and risks.

CoinspeakerZoran Spirkovski

KuCoin’s Proof of Reserves: The Key to Trust and Crypto Payroll Solutions - OneSafe Blog

KuCoin’s Proof of Reserves initiative enhances transparency and trust in crypto, influencing payroll solutions and regulatory compliance across Asia.

OneSafeOneSafe Editorial Team

KuCoin Completes 32nd Hacken-Audited Proof of Reserves

KuCoin publishes its 32nd consecutive Proof of Reserves report, confirming 100% asset coverage. Read here more:

CoinfomaniaTriparna Baishnab