Author

Topic: Could exchanges open their books? (Read 951 times)

legendary
Activity: 1137
Merit: 1001
September 21, 2011, 12:23:01 PM
#8
They could open their books to an auditor and allow the auditor to render an opinion without disclosing any confidential data.  This is how the rest of the world does it.

To finish the thought if not clear: If MtGox goes belly up, the auditor can then be sued for damages, and put up a bond. Of course, the auditor is going to require a fee to do this.

Pick your poison: do you want to pay higher fees for a little more security, or place a discount on MtGox funds that you lay claim to.
full member
Activity: 140
Merit: 100
September 21, 2011, 09:16:03 AM
#7
Exactly. From my futures broker I get a balance sheet every month to see how their balance and health looks like.
vip
Activity: 1386
Merit: 1141
The Casascius 1oz 10BTC Silver Round (w/ Gold B)
September 21, 2011, 08:18:05 AM
#6
They could open their books to an auditor and allow the auditor to render an opinion without disclosing any confidential data.  This is how the rest of the world does it.
zby
legendary
Activity: 1594
Merit: 1001
September 21, 2011, 06:57:31 AM
#5
The answer is basically no because it's confidential user data.
At least the BTC part of the balance is composed of anonymous addresses.  The traditional currency part would be more tricky - sure.
legendary
Activity: 1148
Merit: 1001
Radix-The Decentralized Finance Protocol
September 21, 2011, 06:54:32 AM
#4
The answer is basically no because it's confidential user data.

They could use OT and have their books open while keeping confidentiality.
sr. member
Activity: 463
Merit: 252
September 21, 2011, 06:44:56 AM
#3
The answer is basically no because it's confidential user data.
sr. member
Activity: 462
Merit: 250
September 21, 2011, 05:59:43 AM
#2
It's for precisely this reason that bitcoin exchange/trading services make me nervous.
zby
legendary
Activity: 1594
Merit: 1001
September 21, 2011, 05:58:17 AM
#1
This probably would be too radical for most of the exchanges but maybe some could start doing that as an experiment?  After  the disaster of the Full Tilt scam (http://blogs.reuters.com/felix-salmon/2011/09/20/full-tilt-ponzi/) - this might be a way to improve accountability.
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