#dubaivaraissuesreserveassetauditcircular Dubai's VARA issued a new circular on reserve audits. $XAU $BTC
Here is what it says, and what it does not.
The facts (Oct 6):
Firms must hold at least 100% of what they owe customers
Same asset, 1:1. Owe BTC, hold BTC.
Reconciled every day
Independent audit at least every 6 months
Auditors check hot, warm and cold wallets, and whether customer assets were lent or reused
Not new: the 100% rule already existed. What changed is how deeply it is checked.
My view: this is a mosquito net.
It keeps out many mosquitoes. I sleep better under it.
But a net is not a house. The snake, the rain and the heat still come in.
What this net does not cover:
My own leverage
My own liquidation
My own exit
Platforms outside this regulator
No audit stops me from holding a losing trade too long. I know, because I did. I did not lose to the market. I lost to myself.
What I CAN do
Find out which company holds my account and who regulates it. Keep only what I can afford to lose on any exchange. Set my stop-loss before I enter.
What I CANNOT do
Cannot say this circular covers my exchange. Cannot see inside a wallet. Cannot trust any headline that says "your money is safe."
We need a lot more than one net to be protected.
Do you know which company holds your exchange account?
Follow me for true voice.
#DubaiVARAIssuesReserveAssetAuditCircular #ProofOfReserves #RiskManagement #Binance
Here is what it says, and what it does not.
The facts (Oct 6):
Firms must hold at least 100% of what they owe customers
Same asset, 1:1. Owe BTC, hold BTC.
Reconciled every day
Independent audit at least every 6 months
Auditors check hot, warm and cold wallets, and whether customer assets were lent or reused
Not new: the 100% rule already existed. What changed is how deeply it is checked.
My view: this is a mosquito net.
It keeps out many mosquitoes. I sleep better under it.
But a net is not a house. The snake, the rain and the heat still come in.
What this net does not cover:
My own leverage
My own liquidation
My own exit
Platforms outside this regulator
No audit stops me from holding a losing trade too long. I know, because I did. I did not lose to the market. I lost to myself.
What I CAN do
Find out which company holds my account and who regulates it. Keep only what I can afford to lose on any exchange. Set my stop-loss before I enter.
What I CANNOT do
Cannot say this circular covers my exchange. Cannot see inside a wallet. Cannot trust any headline that says "your money is safe."
We need a lot more than one net to be protected.
Do you know which company holds your exchange account?
Follow me for true voice.
#DubaiVARAIssuesReserveAssetAuditCircular #ProofOfReserves #RiskManagement #Binance
