A recent report by Seoul-based Jungin Accounting states that Bithumb assets have exceeded the total holdings of its clients. The South Korean crypto exchange now possesses more assets than the sum total of all its customers combined. It is perhaps the first time that a crypto exchange’s wealth has surpassed its customer’s holdings.
Recently, Jungin Accounting completed an audit of the Bithumb assets. The report published by the firm revealed that KRW and other crypto holdings of the crypto exchange are more than the cumulative client assets. Interestingly, the report does not reveal the exact difference between the two figures or the actual value of the assets in the exchange’s portfolio.
Bithumb assets jump post mandatory regulatory provisions
Jungin Accounting report further states that Bithumb assets are securely maintained with Nonghyheop (NH Bank) and are separate from the client funds. South Korea recently passed laws making it mandatory for the crypto exchanges to maintain separate accounting credentials for its client and exchange funds. The new regulations would come into effect in 2021.
Most importantly, the newly announced rules state that exchanges maintain funds equivalent to the client-held funds so as to avoid any credit-crunch risks or hacking-related mishappening.
Bithumb assets reach equilibrium with client holdings
Besides shedding light on Bithumb assets, the report also highlights the current scale of operations. As per the data, the exchange handled 3.8 million users monthly in the April-June quarter. Also, it provides a crypto trading facility for 104 trading pairs.
As the new amendment kicks in March 2021, all the crypto exchanges are preparing to maintain the client-exchange asset ratio in equilibrium. However, many well-established exchanges want to build their rapport in the market and achieve the ratio well in advance. It is in the pursuit of such a quest that Bithumb assets have crossed its client holdings.