CMB's new term Proof of Reserve Audit rules.

#Verify that crypto asset service providers store customer assets completely and securely. This is a mandatory audit process in accordance with Article 48 of the circular numbered III-35/B.1.

Prove that 100% of customer assets are available on the platform.

Document that cash and crypto assets are stored correctly.

Audit Frequency: A proof of reserve audit will be conducted every 3 months (3rd, 6th, 9th and 12th months).

Audit Period: There are 4 audit periods in 1 year; each audit will be completed in less than 6 business days.

Audit dates will be kept confidential and wallets will be checked randomly every 2 days.

Audit reports will be submitted to the CMB within 15 business days.

The same auditor can serve for a maximum of 12 terms (3 years).

Crypto Asset List: A list of all crypto assets stored on the platform will be audited.

Cold and hot wallet addresses and balances in these wallets will be examined.

80% of the crypto assets belonging to customers will be included in the scope of the audit.

The status of cash assets belonging to customers in bank accounts will be checked.

80% of cash balances will be audited.

Additional documents or information may be requested from KVHSs during the audit.

Audit Types and Scopes (Appendix-1 Table)

Crypto Asset (e.g. #Bitcoin, #Ethereum)

Reserve Ratio (C/D): The ratio of the reserve to the current value (%).

Minimum Reserve Ratio: Platforms must keep liquid reserves that will cover 100% of customer assets.

If the reserve ratio falls below 100%, this situation will be reported to the CMB and the deficiency will be completed within 1 business day.

Platforms cannot use credit by presenting customer assets as collateral.

Independent Audit: Audits will be conducted by independent audit institutions authorized by the CMB.

It is mandatory to keep platform assets and customer assets separate. The audit will verify the correctness of this separation