Monthly third-party verifications aim to strengthen trust and raise industry transparency standards
In a move designed to reinforce user confidence and establish stronger transparency practices, global crypto exchange MEXC has entered a deeper collaboration with cybersecurity firm Hacken to conduct fully independent, monthly proof-of-reserves (PoR) audits. The initiative reflects a broader industry shift toward verifiable, tamper-resistant reserve reporting after years of scrutiny surrounding centralized exchanges.
Independent Proof-of-Reserves Framework
Under the new arrangement, Hacken will release reserve audits on a monthly basis without requiring approval or edits from MEXC. These reports will match the exchange’s on-chain reserves against user liabilities across major assets, creating an external audit trail that MEXC cannot alter.
A blockchain assurance specialist explained that “regular, independent reserve checks are rapidly becoming the new baseline for centralized exchanges seeking credibility.”
MEXC said its reserves remain fully backed, exceeding 100% coverage across key assets, and users can independently verify their balances through its Merkle tree interface.
How Merkle Tree Verification Works
Merkle-based PoR systems allow users to confirm their inclusion in total reserves by validating cryptographic hashes rather than exposing personal account information.
Experts say this approach provides a privacy-preserving but verifiable method for confirming that an exchange is not operating on fractional reserves.
Hacken, founded in 2017, has built a reputation in blockchain security and compliance, working with institutional-level partners across Web3. Its expanded role with MEXC brings ongoing, audit-grade transparency to the exchange’s reserve disclosures.
Rising Demand for Exchange Transparency
The push for verifiable reserves gained traction following the collapse of major trading platforms in 2022, when billions of dollars exited centralized exchanges amid growing distrust. Since then, industry participants have called for standardized, recurring PoR audits rather than one-time snapshots.
Several exchanges — including Kraken and Bybit — have already incorporated cryptographic audits to validate customer balances and verify wallet ownership.
A Step Toward Higher Industry Standards
MEXC’s decision to implement externally managed, monthly PoR audits underscores a significant shift toward stronger accountability measures in centralized trading environments.
The partnership signals that ongoing verification, not self-reported data, is emerging as the industry’s new trust benchmark as exchanges compete to demonstrate transparency in real time.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.