Should crypto exchanges be audited quarterly?

[Aanuoluwatofunmi]

I don't know if my thought is 100% right but I think if exchanges give accounts of their activities and progress made on a quarterly basis, it will further consolidate the trust users have in the exchange and give users the direction the exchange is headed either positively or negatively.

it all depends on what their policies says concerning this, they may wish to go by their audit on a weekly or monthly basis, and if they also so wishes to make it quarterly or twice a year, its their own decision, but at least, i know doing such will help them a lot in making activity track of their progress over time and keep their record on performance, this will also help them to know if they are having a drop down at a certain point and then they can reevaluate themself.

[NotATether]

This is easier said than done. You can conduct a regular audit when there are already specific international standards set for crypto that auditing firms must follow. As it stands, there is none or I don't know any. Maybe the US and European countries can enforce this because they are usually the pioneers.

Most of the crypto exchanges are incorporated in extremely lax legal havens where it would be basically impossible for bodies like SEC or FCA to force them to conduct an audit of their assets at all, let alone quarterly.

You have all these exchanges incorporated in Malta, Seychelles, Cyprus, various islands around the world, and others where the amount of financial regulation is near zero. That's how they are able to keep getting away with doing shady things to your money.

[yhiaali3]

Of course, it is necessary to conduct regular CEX audits, but not on a quarterly basis, because this requires a lot of work and time and requires companies specialized in financial audits or government agencies. Twice a year is enough.

I expect that the issue is not that simple and requires regulatory laws in the first place. Yes, auditing and review gives some confidence and security to users, but this does not prevent manipulation from occurring at any time, as has often happened.