Digital asset exchange Luno said that it will now begin publishing monthly proof of reserve reports in a bid to enhance transparency and to reassure customers of the security of their assets. The reports will verify to customers that their assets are maintained on a 1:1 ratio on Luno’s platform, indicating that “Luno customer assets are fully collateralised and not used for any other purpose.”

In a statement, Luno also explained that the monthly reports, enhanced by incorporating Merkle Tree verification, will be provided by Moore, a leading international audit, tax and advisory firm. Briefly, Merkel Tree is a form of hierarchical hash verification method to help verify large datasets, including crypto transactions made on the blockchain.

For further context, Luno had actually already been publishing proof of reserves on a quarterly basis in previous years, provided by a different firm, Mazars. These previous reports did not, however, utilise the Merkle Tree verification method.

If you’d like to view your proof of reserves, you can do so now by logging into your Luno account via the website (this function is not available on the Luno mobile app). Head over to “Profile”, then select “Proof of Reserves” and click on the monthly report that you’d like to view. Alternatively, you can also view the reports here on Luno’s website.

On top of that, you can also take the extra step to verify your proof of reserves by using the Merkle Tree tool provided. Here’s the step-by-step guide to help you out:

• Copy your Hashed User ID or the Merkle Leaf.
• Select the “Self-verify on TrustReserve” button, and you’ll be redirected to a widget on Moore’s TrustReserve website.
• Select the “My Account” tab on the widget, then choose the date of the report that you’d like to verify (it must match the date of the report you’ve selected on Luno).
• Paste your Hashed User ID or Merkle Leaf data accordingly, and select “Check My Account”.

Country manager of Luno Malaysia, Scarlett Chai said that the Luno has always strived to maintain the highest levels of security standards, strictly abiding by all regulatory and compliance measures as it work with partners like the Securities Commission Malaysia (SC).

“Although there is currently no legal or regulatory obligation to publish proof of reserve reports, we believe it is an important step to build trust in the crypto space. Luno’s 12 million global customers – with over 800,000 of those in Malaysia – can rest assured that their wallets do contain the crypto stated,” said Chai, adding that the new report is an external validation that Luno is a safe platform to buy and store crypto.

Director of blockchain and digital assets at Moor, Dale Russell also shared some insights on the significance of incorporating the Merkle Tree verification as part of the reports.

“Utilising the Merkle Tree method for generating proof of reserve reports is considered the industry’s gold standard of verification. Our Moore-powered platform enhances transparency, credibility, and trust between platforms and their users. Large amounts of data are consolidated in a privacy friendly and tamper-proof manner, so individual data points can be verified while ensuring that personal information remains confidential,” said Russell.

Luno had also recently received an A-Grade rating in CCData’s Exchange Benchmark, which uses over 200 qualitative and quantitative metrics to rank the risk associated with digital asset exchanges; it covered more than 150 exchanges across eight categories of evaluation. Meanwhile, CCData itself is a global crypto market data provider.

• TAGS:
• CCData
• Cryptocurrency
• Dale Russell
• Luno
• Luno Malaysia
• Mazars
• Merkel Tree
• Moore
• Proof Of Reserve
• Proof Of Reserve Reports
• Scarlett Chai