Proof of Reserves has Failed! PoLAR (Proof of Liabilities, Assets & Reserves) will lead us out of the Crypto Ice Age
The Institutional Crypto industry is around 4 years old. It has grown faster than almost any other human made technology in history, causing tremendous growing pains, as Crypto firms navigate Audit, Accounting, Regulatory & Compliance frameworks built for TradFi.
As Crypto firms have looked to validate their holdings and financial positions they have reached for Proof of Reserves. This will not provide a full picture of their financial situation. It will fail as a means of reassuring their customer base. They must embrace PoLAR.
What is PoLAR?
Crypto “Liabilities, Assets, and Reserves” refer to the financial position of a Crypto exchange, wallet, or other platform that holds or manages Crypto on behalf of its users.
Crypto businesses can validate their PoLAR in many ways, but the core is to have reliable, secure and robust transaction management systems that can produce accurate reporting for key stakeholders, including Customers.
Having a robust system in place can help a Crypto business to:
2023 will be the year of Crypto Infrastructure Investment for Crypto Businesses who want to survive, demonstrate their PoLAR and then thrive. Robust systems must be implemented to allow trusted third parties (Auditors, Regulators, Tax Authorities, Customers) to show you your way out of the Crypto Ice Age, or remain frozen in time! #PoLAR
To find out more about #PoLAR contact [email protected]