Should crypto exchanges be audited quarterly?

[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.