👣 BitList.co - Mixers ' Exchanges ' Services ' Casinos.

[SamReomo]

Of course, it is a good thing if exchanges have publicly stated proof of reserves. Users will have more confidence if they know that the exchange has sufficient resources and does not depend on third parties.

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

[Cantsay]

I wonder if KYC-free or decentralized exchanges have proof of reserves like centralized exchanges to begin with? The fact that a decentralized casino doesn't specifically hold a user's funds since users connect their wallets, make their swaps/exchanges, and everything is basically done on-chain, I don't see any reason for such exchanges to have proof of reserves.

Frkm what I know I don’t think they have since they both operate differently. Like you said, centralized hold unto users funds but decentralized exchanges are not like that they don’t hold anything and since they don’t then there’s no need for them to have any reserves - as long as they keep their operations transparent for users they really shouldn’t be bother with POR.

I have noticed that there are no referral links used, when ideally, such a platform can easily utilize referral links and affiliate programs of the services listed to earn some good money from people who use the services through them, and I have seen a lot of websites doing that, but Bitlist isn't cashing on it. I think that's something we should appreciate because they are dedicated to provide us with good platforms to use instead of using us to earn money themselves.

Most sites that do a compilation of services usually do it purely for the referral they do get from people visit their site, I’m not saying it’s a bad thing since those referrals will help them pay maintenance costs of the site and similar charges but for bitlist.co to be able to make this work without having to include referral link just shows how much they care about those visiting their site. It’s rare to come across this type of site.

[examplens]

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

reserves have nothing to do with taxes. The amount of reserves does not mean that this amount is annual profit.
Plus, avoiding paying taxes leads to serious fines + paying taxes with extra penalties. I see no reason for legitimate businesses to do that.

[bitmover]

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

reserves have nothing to do with taxes. The amount of reserves does not mean that this amount is annual profit.
Plus, avoiding paying taxes leads to serious fines + paying taxes with extra penalties. I see no reason for legitimate businesses to do that.

Proof of reserves just means that the exchange holds 1:1 for each bitcoin or any other crypto people have there.

If everyone withdrawals at same time,  the exchange can honor all withdrawals because they have enough reserves. Nothing to do with privacy or taxes

[KingsDen]

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

reserves have nothing to do with taxes. The amount of reserves does not mean that this amount is annual profit.
Plus, avoiding paying taxes leads to serious fines + paying taxes with extra penalties. I see no reason for legitimate businesses to do that.

Proof of reserves has more to do with building customers confidence, mitigating risk of insolvency than compliance and financial regulations. In as much as proof of reserves is necessary in countries which take financial transparency seriously, I don't think this forms the bases for tax calculations. I think taxation targets profits and not PoR

[dkbit98]

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

Other exchanges are not declaring exact number of coins and proof of reserves because it's to complicated for them, especially if they are bigger exchange.
Taxes or privacy are not the real reasons for sure, and most big centralized exchanges are not showing real numbers because they are doing wash trading.

[Alone055]

Of course, it is a good thing if exchanges have publicly stated proof of reserves. Users will have more confidence if they know that the exchange has sufficient resources and does not depend on third parties.
The importance of this was shown after the FTX collapse, who invested beyond their means, i.e. invested user assets in very dubious projects.
It was quite topical at some point https://coinmarketcap.com/academy/article/proof-of-reserves-these-exchanges-are-adhering-to-the-new-standard

I totally understand and agree with that, but I was referring to decentralized exchanges where the exchange doesn't actually hold users' funds, but users use their swaps to exchange their assets from one to another, and it's all done using smart contracts and through on-chain transactions between users.

FTX was a centralized exchange, and of course, if an exchange is centralized, and their customers are supposed to have an account with them and keep their assets within the exchange, which means that the exchange is in charge of the assets, then of course, they are supposed to have proof of reserves for transparency so that their customers can have confidence in using them if they see that their funds are safe and they can withdraw them at any point if they want to.

[Wiwo]

But all the same mate your suggestion is good, proof of reserve will only build trust for the project from its community, but have little to nothing in terms of service provisions which is very necessary, so advancing their services and making constant upgrades is for more preferred than posting proof of reserves.

I wonder if KYC-free or decentralized exchanges have proof of reserves like centralized exchanges to begin with? The fact that a decentralized casino doesn't specifically hold a user's funds since users connect their wallets, make their swaps/exchanges, and everything is basically done on-chain, I don't see any reason for such exchanges to have proof of reserves.

Of course, it is a good thing if exchanges have publicly stated proof of reserves. Users will have more confidence if they know that the exchange has sufficient resources and does not depend on third parties.
The importance of this was shown after the FTX collapse, who invested beyond their means, i.e. invested user assets in very dubious projects.
It was quite topical at some point https://coinmarketcap.com/academy/article/proof-of-reserves-these-exchanges-are-adhering-to-the-new-standard

Few reputable exchanges publicly list their reserve funds and wallets make it public for their users and visitors to verify their claims of having available reserve funds, having the new standard will be a lot of buster for the customer.

Just imagine the hack on one of the world biggest exchanges Bybit a few hours ago imagine if there don't have reserve funds of $ 1 billion in a hack that could have brought their activities to it.

[Bobcrypto]

Of course, it is a good thing if exchanges have publicly stated proof of reserves. Users will have more confidence if they know that the exchange has sufficient resources and does not depend on third parties.

I fully agree with you if the exchanges publicly state their proof of reserves then that will be a great thing. But as far as I understand most of the exchanges won't show such details to public as they always bring that privacy aspect when talking about such things. They might have more reserves then they declare and that might make them pay more taxes if I'm not wrong.

Many CEX exchange do not have proof of reserve, and even those that has proof of reserve may find it difficult to outrightly publicize it for some security reason. I think there are many tie three CEX exchanges that have no proof of reserve, obviously some of them has gone insolvent, with many of them struggling to survive the strong competitive  crypto market trading.
in addition, i am still very skeptical about Dex exchanges proof of reserve reports since the collapse of the FTX exchange. I think Dex exchange should make their proof of reserve known to the crypto community, or probability Dex exchange are excluded?

[SamReomo]

reserves have nothing to do with taxes. The amount of reserves does not mean that this amount is annual profit.
Plus, avoiding paying taxes leads to serious fines + paying taxes with extra penalties. I see no reason for legitimate businesses to do that.

If it has nothing to do with taxes then those centralized exchanges shouldn't really worry about that aspect of sharing information about their reserves.

Actually, I agree that most legit businesses never avoid paying taxes, however they know most of the tricks to pay less taxes and still be safe from extra penalties.

If we look back in past then FTX is a good example for us, they never shared their proof of reserves publicly and users were still considering them as legitimate, but their collapse showed another side of the picture.

[examplens]

If it has nothing to do with taxes then those centralized exchanges shouldn't really worry about that aspect of sharing information about their reserves.

Actually, I agree that most legit businesses never avoid paying taxes, however they know most of the tricks to pay less taxes and still be safe from extra penalties.

Bybit hack is one more example. Imagine if they hid their profits to avoid taxes, now they would probably have to pay fines for inaccurate reporting of profits in addition to the loss due to the hack. Double loss, right?

[bitmover]

Actually, I agree that most legit businesses never avoid paying taxes, however they know most of the tricks to pay less taxes and still be safe from extra penalties.

Yeah, they hire specialists to maximaze their gains and avoid every possible tax. But all legal...
Big companies cannot operate illegally for long

If we look back in past then FTX is a good example for us, they never shared their proof of reserves publicly and users were still considering them as legitimate, but their collapse showed another side of the picture.

I think proof of reserves is something that became common after FTX collapse.

[dkbit98]

Yeah, they hire specialists to maximaze their gains and avoid every possible tax. But all legal...
Big companies cannot operate illegally for long

I am sure all big companies continue to manipulate anything they can manipulate.
For example, they could stage a ''hack'' and stolen coins, and all this evil North Korean hackers that conveniently and suddenly show up everywhere is not realistic threat for me.
Imagine a country in total isolation for so long having the best hackers in the world.... yeah right 
 

[bitmover]

For example, they could stage a ''hack'' and stolen coins, and all this evil North Korean hackers that conveniently and suddenly show up everywhere is not realistic threat for me.
Imagine a country in total isolation for so long having the best hackers in the world.... yeah right 

I don't think this unrealistic at all.

Imagine getting paid to learn how to hack systems, in schools of hackers.

And if you hack western companies you won't get into jail, but you will get a raise lol
Looks a very good incentive to me, and lots of people there might be doing it, if such conditions exist

[SamReomo]

Bybit hack is one more example. Imagine if they hid their profits to avoid taxes, now they would probably have to pay fines for inaccurate reporting of profits in addition to the loss due to the hack. Double loss, right?

Yes, that's a good example, and I believe other exchanges should learn a lesson from such type of hack. It shows that it's good to share profit related information to centralized system, and that way they can be safe from paying fines. However, I still think they do have some legal tricks to reduce taxes to some extent.