Binance [BNB] Latest Proof of Reserves Report Shows Positive Trend in Bitcoin and Ethereum Holdings

Binance [BNB] has been through a series of litigious battles and regulatory scrutiny over the last year. Despite the struggles faced by Binance, the overall state of the exchange remained positive.

Binance [BNB] had a relatively positive year, despite the legal battles and regulatory difficulties it encountered.

The exchange recently released its 20th proof of reserves report, which provides a detailed overview of its users’ cryptocurrency holdings and offers insight into the exchange’s financial stability.

The report indicates a positive trend in Bitcoin (BTC) holdings, with user BTC assets reaching 605,637, marking a 4.01% increase compared to 1 June.

Additionally, Ethereum (ETH) holdings showed a slight increase of 1.01%, with user ETH assets reaching 4.711 million.

However, there was a decrease in holdings for Tether (USDT), with user USDT assets falling to 21.51 billion, representing a decline of 2.54% from the previous month.

These regular proof of reserves reports aim to build trust among users by demonstrating the exchange’s solvency and the secure storage of their assets. This transparency can attract new users and encourage existing users to hold larger amounts of crypto on the platform.

Despite the positive exchange update, there were some problems brewing that could potentially cause trouble for Binance.

Olubukola Akinwumi, the deputy director of the Central Bank of Nigeria (CBN), made some serious accusations against Binance.

According to local media reports, Akinwumi accused the cryptocurrency exchange of engaging in financial activities that are usually reserved for authorized banks and institutions.

The deputy director’s testimony went beyond just the money laundering allegations. He specifically pointed out that Binance permits its users in Nigeria to carry out transactions while hiding behind pseudonyms.

This, according to Akinwumi, directly violates CBN regulations. The central bank mandates that all parties involved in financial transactions must disclose their true identities.

Furthermore, Akinwumi raised concerns regarding Binance’s peer-to-peer (P2P) platform, which facilitates direct transactions between users. He highlighted that these transactions involve the transfer of Nigeria’s fiat currency, the Naira.

These factors could tarnish the image and reputation of the Binance exchange, which might even have negative effects on the BNB token. At press time, BNB was trading at $509.71, having seen a 0.73% decrease in price over the last 24 hours.

The social volume around the token had spiked, but weighted sentiment declined, indicating an increase in negative comments surrounding the BNB token.

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