MEXC has enhanced its collaboration with blockchain security firm Hacken to implement monthly, independently verified Proof-of-Reserves (PoR) audits. This initiative is pivotal in establishing a structured framework for transparency within the exchange.

The independent audits will supplement MEXC’s existing PoR infrastructure, thereby providing an immutable record of reserves that can only be verified externally. Reports will be solely authored by Hacken commencing in late November, ensuring that MEXC cannot influence their content. The audits will also align MEXC’s reserves against user balances for significant assets.

MEXC maintains that its reserve ratios consistently exceed 100% across key assets, with users given the means to verify their balances through the platform’s Merkle tree system, located on a dedicated proof-of-reserves page.

A Merkle tree PoR allows users to verify their assets within an exchange’s total balances by checking cryptographic hashes, negating the need for full account data exposure.

In response to inquiries on whether MEXC anticipates that regular third-party PoR audits will set an industry standard, a representative from MEXC stated:

“We believe the industry is moving in this direction. One-time or irregular PoR snapshots no longer meet the expectations of either users or institutional counterparties. Strengthening regulation in the US, EU, and Asia also points to a trend toward mandatory periodic reporting.”

Founded in 2017, Hacken has emerged as a blockchain security and compliance entity specializing in Web3 and AI-enhanced tools, working with over 1,500 clients including notable organizations such as the European Commission, MetaMask, Ethereum Foundation, and Binance.

MEXC, which was established in 2018, claims to cater to over 40 million users spanning 170 nations and regions. According to CoinMarketCap data, the exchange is ranked ninth in trading volume, approximately $3.65 billion.