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July 7, 2021

Governance & Guardrails

Proof of Reserves – Establishing Best Practices in the Digital Assets Industry


Ian Taylor
Chair, CryptoUK
Noah Buxton
Blockchain Practice Leader, Armanino LLP

Although major hacks at crypto exchanges and custodians happen far less frequently than they used to, many of these operators are now responsible for hundreds of billions of dollars worth of client assets – often without the same regulatory and auditing requirements of their peers in traditional markets.

With blockchains offering a level of transparency not feasible elsewhere, the concept of Proof of Reserves was first proposed by Bitcoin core developer, Greg Maxwell, back in 2014 whereby entities could public attest, and cryptographically prove, that they could meet their total obligations without impacting the privacy of individual customers.

Although a small number of exchanges adopted these practices, they have for the most part been ignored.

Noah joined Ian to discuss the paper that he recently co-authored on behalf of the Chamber of Digital Commerce that proposes best practices, bother operationally and technically, for operators in the space to implement – thus setting standards to enhance trust in the industry as a whole.

You can download the full report at:

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Paul Gordon
Following a 20+ year career in financial markets, Paul first became interested in Bitcoin in 2011 and helped to establish one of the world's first Bitcoin meetup groups, Coinscrum, in 2012 since when he has grown the community to over 6,500 members, hosting over 250 events and introducing many of the leading projects and thought leaders in the industry.  Paul currently produces the weekly Coinscrum Markets video podcast series and is an active investor and advisor to a number of crypto and blockchain related projects.

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