The virtual asset exchange Covit announced on the 16th that it has decided to disclose its virtual asset holdings and wallet addresses for the first time in the domestic industry.
With this decision, Covit customers will be able to know exactly the quantity held by Covit every day and the wallet address to check it for all virtual assets listed on Covit, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
Covit’s decision came after investors’ doubts grew over whether the virtual asset exchange held assets entrusted by customers as FTX recently entered the bankruptcy process. Famous overseas virtual asset exchanges also announced the launch of related services, saying they would show their virtual asset holdings.
While most overseas exchanges only disclose their holdings, Covit discloses not only their holdings but also their wallet addresses. Through this, you can check the details of Covit’s virtual asset transactions in detail. A Kovit official said, “Kovit’s unconventional and quick response is a decision to focus its efforts on protecting investors by enhancing transparency.”
Meanwhile, Kovit has been conducting quarterly due diligence through external auditors since the third quarter of 2021 to increase confidence in whether to separately store won deposits and the amount of virtual assets on the exchange it operates. Through the due diligence, it is periodically confirmed that Kobit, compared to the won and virtual assets deposited by customers, stores more than 100% in the exchange wallet.
Some suspected that domestic virtual asset exchanges held virtual assets and won deposits more than customers entrusted during the audit period alone. This is because the details of virtual asset holdings were not disclosed every day. As a result, Kovit’s decision is expected to dispel related concerns.
Oh Se-jin, CEO of Covit, said, “The bold disclosure of the number of virtual assets held by Covit was possible because it has always followed the principle of complying with laws and operating transparently,” adding, “Covit will continue to do its best to create a virtual asset exchange that customers can trust and use based on Covit’s transparency and reliability.”
Meanwhile, in line with this decision, Covit will hold a “Moving Virtual Assets to Covit” event until the 30th of this month to attract assets from domestic and foreign exchanges to Covit. During the event period, customers can receive a reward of up to 500,000 won if they deposit virtual assets from outside into the Covit account and maintain their balance until the 31st of next month. Details of the virtual asset deposit event can be found on the Covit website.