Last updated on October 13th, 2017 at 10:49 pm
Canadian exchange, “Vault of Satoshi”, has just launched its public auditing service and demonstrated its proof of solvency. In March, the Canadian company received a full Money Services Business licence to operate in all provinces of Canada and international customers in certain countries.
The company wants all of its customers to be able to check that the funds it claims to have are present. However, there may be an error of around 5% in the figure due to the company’s hot wallet address not being published for security reasons.
Vault of Satoshi’s director of marketing, Adam Cochran, exclusively told Coinbuzz:
“When it comes to our Proof of Solvency we simply felt that a third-party audit wasn’t enough when it came to our users peace of mind. For this reason we had our software engineer work directly on a custom solution that allowed us to launch a full custom Proof of Solvency tool where users can verify their balances and the total holdings of the exchange. On top of that we published the address of our cold wallet which holds 95% of our coin holdings so it can be verified on the blockchain.
We felt this was simply the right thing to do, we work in an industry that needs greater transparency and reliability and we at Vault of Satoshi are committed to bringing that to our customers; we always put our customers first.”
For this reason we have long sought after a way to prove our reserves to the public in a safe and reliable manner, while most exchanges issue a third-party audit, we felt that simply wasn’t open enough – so today at Vault of Satoshi we are proud to announce full proof of solvency and the publication of our cold wallet.”
Cryptocurrency exchanges having fully transparent cryptographic audits is a growing (and welcome) trend in the industry. We recently reported on how the only exchange in London, CoinFloor, would be offering the same kind of service to its customers. Before that, Kraken was independently audited and was found to have 100% of claimed funds.
Just as Bitcoin itself was a reaction to the 2009 banking crisis, cryptocurrency exchanges have had to go the extra mile to prove their trustworthiness after the Mt. Gox scandal, which is still unfolding.
Vault of Satoshi says of itself on its website:
“Vault of Satoshi is a reputable 100% Canadian owned and operated virtual currency trading platform serving a Global market. We allow you to trade fiat currencies (such US Dollars) for crypto-currencies like Bitcoin, Litecoin or Peercoin, with other members of the Exchange safely and reliably.”
Being based in Canada, Vault of Satoshi, already enjoys quick fiat transfers of Canadian dollars through the Interac system. However, it also launched a “coin to coin” feature whereby users can trade directly between altcoins. In many other exchanges, one would have to convert an altcoin to another altcoin by making an intermediary trade in bitcoins. At the Vault of Satoshi, however, one can trade directly between every cryptocurrency and fiat currency on offer.
Cochran also told us:
“Most revenue for any Cryptocurrency business comes from Bitcoin transactions, the volume and value of Bitcoin compared to other coins is absolutely insurmountable. But, we knew a number of our users enjoyed trading in Altcoins and also felt that other exchanges made it far too complex to go from one coin to another as you had to first go through Bitcoin which would make tracking their comparative values a hassle. After hearing this from our users we began to research and implement promising coins with active communities and, unlike other major exchanges, offer direct coin to coin.
At the end of the day Vault of Satoshi prides itself on customer satisfaction. We want our customers to walk away from every interaction with us, with a smile on their face and peace of mind at their security. For this reason we will always strive to be transparent, secure and lead the industry in features the community wants!”