Topic: Is there any demand for a Bitcoin auditing service? - page 2. (Read 1831 times)
auditing service is important to check the exchange's bitcoin or fiat balance, or check the technical strength or potential bugs that may be existing. It will make the exchange embedded with the highest level of protection.
It's more likely that a real auditing firm would get some Bitcoin expertise if they needed to audit a Bitcoin-oriented firm. Auditing firms audit all kinds of hard-to-audit companies. Bitcoin companies aren't that hard to audit - so far, they're basically cash businesses. Asset valuation isn't a big problem.
The problem is thatsuckers Bitcoin users have been putting their trust in un-audited companies. Is Bitstamp broke? We don't know.
The problem is that
bitlicense will solve this, what do u think
Regularly audit check is really needed , exchanges / offchian services should also provide their 100% reserve 24/7 .
But , the platforms especially Chinese exchanges refuse to prove they are doing a clear biz . And you can't enforce them to do this .
That's the real painful problem .
But , the platforms especially Chinese exchanges refuse to prove they are doing a clear biz . And you can't enforce them to do this .
That's the real painful problem .
I wonder if there is any demand from the Bitcoin community for an auditing service. Currently, the most suitable people to audit Bitcoin exchanges are people who have an in-depth understanding of Bitcoin - e.g. people like Roger Ver (who audited Mt. Gox in 2011), Andreas Antonopoulos (who audited Coinbase), Mike Hearn (who audited Bitstamp), and Stefan Thomas (who audited Kraken).
Only problem is, those who have the technical capability to audit Bitcoin exchanges do not have the capability or knowledge to properly audit the fiat aspects of a business. And the people who have the capability to properly conduct an audit of the fiat aspects of a business (typically performed by charted professional accountants) do not have the technical know-how to audit the Bitcoin side of things.
Why is the fiat component important? If you're dealing with an exchange, it is possible for a business to make up for its shortage of BTC by borrowing or buying BTC with fiat. Someone like Roger Ver or Andreas Antonopoulos would look at the Bitcoin wallet and think that everything is OK, but a closer look at the fiat side might indicate that the exchange is actually insolvent.
NXT has an auditing service called NXTInspect which calls itself "the first crypto audit service". They look at whether a security listed on the NXT asset exchange is legitimate or not by looking at its business plans. This is great but NXT assets typically don't deal with fiat, so while their team may be competent enough for auditing the crypto side of things, they are unlikely to have the accounting know-how to undertake a proper audit of the fiat dealings of a business.
What do you think? Do you think that having a Bitcoin auditing business which teams up fiat experts with crypto experts is a good idea?
Only problem is, those who have the technical capability to audit Bitcoin exchanges do not have the capability or knowledge to properly audit the fiat aspects of a business. And the people who have the capability to properly conduct an audit of the fiat aspects of a business (typically performed by charted professional accountants) do not have the technical know-how to audit the Bitcoin side of things.
Why is the fiat component important? If you're dealing with an exchange, it is possible for a business to make up for its shortage of BTC by borrowing or buying BTC with fiat. Someone like Roger Ver or Andreas Antonopoulos would look at the Bitcoin wallet and think that everything is OK, but a closer look at the fiat side might indicate that the exchange is actually insolvent.
NXT has an auditing service called NXTInspect which calls itself "the first crypto audit service". They look at whether a security listed on the NXT asset exchange is legitimate or not by looking at its business plans. This is great but NXT assets typically don't deal with fiat, so while their team may be competent enough for auditing the crypto side of things, they are unlikely to have the accounting know-how to undertake a proper audit of the fiat dealings of a business.
What do you think? Do you think that having a Bitcoin auditing business which teams up fiat experts with crypto experts is a good idea?
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