Revix makes history with independent ‘proof of reserves’ audit
Information about Revix makes history with independent ‘proof of reserves’ audit
Revix has raised the bar of transparency by becoming the first South African crypto provider to undergo an independent ‘proof of reserves’ audit, verifying that clients’ funds are invested in cryptocurrencies as indicated on the Revix platform.
Revix CEO Sean Sanders says South Africa hasn’t exactly covered itself in glory when it comes to the custodianship of client funds in the crypto space. Mirror Trading International (MTI), Africrypt and liquidated crypto exchange iCE3X have soiled SA’s reputation, with billions of rands potentially gone forever, and all of this in just the last year.
This has left the ordinary South African confused as to who to trust in the crypto space, which remains largely unregulated – at least for the moment.
Reputable players are eager to see cryptos being regulated, as this would likely be followed by a wall of capital being pumped into cryptos.
Says Sanders: “Crypto trading platforms like MTI, Africrypt, and iCE3X should have provided the impetus for regulators to start focusing on what matters when it comes to crypto: protecting customers and their funds.
“Fast forward through a pandemic, half a decade, and countless international crypto platform failures, where customers lost innumerable sums of money, and the crypto industry in South Africa is still in the exact same position as in 2017.”
Crypto regulation in SA
Several South African governing bodies joined together in 2017 to form the Intergovernmental Fintech Working Group (IFWG) Crypto Assets Working Group to formulate a collective policy position on cryptocurrencies and the financial service providers facilitating the crypto market in South Africa.
Regulations are yet to be published. The IFWG did however come out with a press release on June 11, 2021 outlining how cryptocurrencies could be regulated in South Africa. Unfortunately, this brief press release made no mention of enforcing oversight of securing customer funds for crypto platforms.
Crypto platforms step up
In preparation for the eventual arrival of crypto regulations, Revix, the Cape Town-based investment platform backed by JSE-listed Sabvest, partnered with audit and accounting firm Mazars to undertake an independent, verified audit to prove that customer funds are properly held.
The ‘proof of reserves’ report released by Mazars on October 1 makes Revix the first cryptocurrency service provider in South Africa to independently verify that it holds all of its customers’ cryptocurrencies.
Wiehann Olivier, audit partner and digital asset lead at Mazars South Africa, says the proof of reserves report was designed to give users of various digital asset platforms the needed reassurance in the current unregulated industry and therefore will be a fundamental advantage to stakeholders.
“We are optimistic that the trend of proof of reserves reporting will be followed by other South African and international virtual asset service providers like Revix to add to the credibility of the industry as well as ensure a safer investment environment.”
Revix has made the proof of reserves report available to the public through its website at www.revix.com.
Sanders says the purpose behind the publication of the report is to bring trust and transparency to the cryptocurrency industry, where regulators have been slow to adapt, and various crypto scandals have left South African investors worse off, with no one to turn to.
“This is a big step forward in the South African crypto landscape as we hope to set the standard for other crypto platforms,” says Sanders.
“The security measures and risk management procedures that crypto platforms implement to protect their customers’ cryptocurrency holdings are the most important areas that regulators seem to be missing. This independent report from a top accounting and auditing firm is a step forward in further developing the cryptocurrency industry in South Africa.
“I strongly believe that in the long run, the companies that provide their customers with the necessary transparency, security and peace of mind, will win.
“We challenge other crypto platforms to follow our lead. Amidst increased regulatory interest in the cryptocurrency industry, we at Revix are setting the bar high to prove to our clients and investors that the assets entrusted to us are indeed in good hands – a testament to which is the independent audit by Mazars.
“We’re proud to submit this overview of our process to the global cryptocurrency community. We believe that the crypto industry can provide a level of assurance and accountability that surpasses the traditional financial services industry, and we aim to lead the charge toward optimal transparency.
“For businesses in the crypto and financial sectors, customer trust is a foundational block and showing reserves are fully backed lays another brick in the path of building long-term customer relationships.”
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform enables anyone to securely own the world’s top investments in just a few clicks.
Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
For more information, please visit www.revix.com
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