Binance, the world’s largest cryptocurrency exchange, has appointed Grant Thornton as its global accounting and tax advisor.
Grant Thornton is a leading accounting firm with a strong global presence. It will advise Binance on its accounting policies and ensure compliance with International Financial Reporting Standards (IFRS).
Binance Makes Fresh Move Toward Transparency
As part of the announcement, Binance said it is preparing for future audits across its global business operations.
Previously, it collaborated with Mazars to create a Proof-of-Reserves (PoR) report for crypto clients. However, Mazars paused its work with Binance and other crypto clients due to concerns that the public might need to understand those reports.
Onboarding Grant Thornton will help Binance match the industry’s sustained evolution. It will also properly handle the increasing scrutiny from regulators worldwide. The alliance with the accounting giant highlights the company’s commitment to transparency and regulatory compliance.
The Detail of the Binance-Grant Thornton Partnership
Grant Thornton will advise Binance on various accounting policies covering cryptocurrency and non-crypto-related transactions. In addition to advising on accounting policies, Grant Thornton will assist Binance in refining its existing accounting processes. This includes enhancing the documentation of business transactions. It will also ensure that Binance’s financial records are accurate, detailed, and aligned with global best practices.
This focus on meticulous documentation is essential for the exchange. The firm is preparing for potential audits and aims to strengthen its reputation as a financially transparent firm. The partnership also signals Binance’s proactive approach to addressing regulatory expectations.
Like Binance, USDT issuer Tether has also made defined efforts to increase transparency around its holdings. According to a Wall Street Journal report, the financial services company Cantor Fitzgerald helps Tether oversee a $39 billion bond portfolio of United States treasury securities.
Beyond helping to “manage” a portion of Tether’s portfolio, Cantor Fitzgerald’s specific involvement with the stablecoin issuer was not fully spelled out.
Leading the Crypto Market Toward MiCA Compliance
Recall that Binance has started supporting Eurite, a new stablecoin backed by the Euro. Binance’s EURI listing aligns with its Markets in Crypto-Assets Regulation (MiCA) compliance plan. The exchange also intends to expand compliance with the MiCA standards as part of its compliance strategy.
This move by the exchange to support EURI highlights the platform’s influence in determining how the crypto market responds to regulations. Through supporting MiCA-compliant products, Binance is aligned with the law and promotes market integrity and investor trust.
To show it implements measures to show it is keen on compliance, it conducts regular token delisting. Recently, it discontinued non-compliant stablecoins on its platform. This has set a precedent that other crypto exchanges may follow.
Meanwhile, Richard Teng, the CEO of Binance, provided an overview of the company’s adaptive strategies in response to past regulatory challenges. He emphasized the lessons learned and the measures implemented by the exchange to enhance user experience. Teng shared a vision of a strong brand that has grown to gain trust worldwide as it seeks to provide better services.
