Binance Partners with Grant Thornton for Enhanced Financial Compliance

Binance Engages Grant Thornton for Accounting and Tax Advisory

In a recent announcement, Binance revealed that it has enlisted the services of Grant Thornton, a U.K.-based firm, to provide guidance on accounting and tax-related matters. This strategic partnership aims to enhance the exchange’s financial operations and compliance.

Previously, Binance collaborated with the auditing firm Mazars to create a proof-of-reserves report intended for its crypto clients. However, in December 2022, Mazars paused its services for Binance and other cryptocurrency clients, citing concerns over the public’s potential misinterpretation of these reports.

Grant Thornton is no stranger to the crypto sector, having previously worked with the stablecoin issuer Circle. A spokesperson for Binance stated that the firm will assist in navigating various complexities, including:

• Technical accounting
• Financial reporting
• Audit preparedness
• Tax matters

The urgency for transparency within the crypto industry has intensified, especially following the collapse of former crypto exchange FTX. In response, there has been a growing demand for exchanges to provide regular proof-of-reserves to verify that they possess the assets they claim to hold. However, it’s essential to note that proof-of-reserves merely offers a snapshot of an exchange’s financial standing at a specific moment, which could create potential loopholes for companies. This concern was one of the reasons Mazars decided to halt its work on these reports.

As clients increasingly request comprehensive financial audits from crypto exchanges, Binance has indicated that Grant Thornton will play a pivotal role in preparing the exchange for such audits, although the firm will not serve as Binance’s auditor.