Bitbuy has always been laser focused on being a secure and compliant platform for Canadians. Since selling our first bitcoin in 2016, we have continued to find ways to promote transparency for our clients. As many people are certainly aware, Canadians have been hit hard with series of scandals and exchange shutdowns in the cryptocurrency industry, creating a lack of trust between customers and their cryptocurrency platforms.
In 2019, Bitbuy decided to try to break this trend, and commissioned our first proof of reserves report. The report looked at all aspects of our business including cold storage, security practices and team background checks to ensure Bitbuy was operating as transparently and compliant as possible.
The report was put together to provide third-party assurances to our clients that their funds were held 1:1 and that the measures taken by Bitbuy with respect to safety were in-line with or exceeded industry standards.
In 2019 and 2020, Bitbuy saw sizeable user growth, as well as major operational changes such as moving BTC cold storage to Canada’s only 1:1 insured custody provider, Knox. We felt it was a great time to conduct another proof of reserves audit to prove that we continue to deliver on our mission of being the most transparent, compliant and secure platform we can be.
Furthermore, we believe routine Proof of Reserves reporting is integral for platforms to self-regulate in our industry. All platforms should be conducting these types of audits, to prove that they are acting as compliant as possible when holding their customers cash and crypto assets. It is especially important for platforms to conduct these audits while official regulations continue to mature in different jurisdictions.
These reports are also important for our leadership team to demonstrate prudent practices and to ensure that client funds remain a top priority for the company at all times.
2020 Report Findings
In early 2020, Bitbuy commissioned Blockchain Intelligence Group, a search and analytics company, to conduct our second Proof of Reserve and Platform Due Diligence Report.
This report provides a third party, unbiased and objective review of the counterparty risk associated with using the Bitbuy platform. Their analysis includes historical research as well as current research and analytics to provide a comprehensive and chronological review of Bitbuy. A sample of transactional data from the most recent calendar quarter of operations was also analyzed.
Some of the 2020 reports key findings include, but are not limited to:
- Anti-money laundering and anti-terrorist financing Score: 100 – Low Risk
- Aggregate Transactional Risk Score Q1: 98.92 – Low Risk
- Aggregate Transactional Risk Score Q2: 99 – Low Risk
- The platform exceeds internal mandate of 95% cold storage
- Considered to be at a lower risk for theft, fraud, money laundering, sanctions evasion and terrorist financing.
- AML compliance program meets the national regulatory requirements in Canada
- Engagement with law enforcement and government authorities has proliferated Bitbuy’s reputation as not only a secure platform, but a trusted actor in the virtual currency community.
BIG’s President, Lance Morginn, commented, “We are pleased to be the trusted platform that Virtual Asset Service Providers can turn to for an unbiased third party assessment. Customers safety and security is of the utmost importance in the Virtual Asset space as we continue to see rapid growth all over the world. BIG is here to ensure that this continues to be the case and have a way to recognize who the leaders are in the industry.”
Bitbuy remains committed to being an industry leader in Canada for customer safety and security and trust. As such, we are working with Blockchain Intelligence Group to streamline this audit process, and release more frequent Proof of Reserve reports.
Adam Goldman, founder of Bitbuy added “This is our second Proof of Reserve report that will be made publicly available.Proof of Reserve is an important tool that all platforms in our industry should utilize – transparency is critical for our clients and partners to feel safe and secure when using the Bitbuy platform.”