Auditor Independence

Auditor independence is the principle that an auditing firm must be free from any influence or conflict of interest with the entity it is auditing. In the crypto space, this is critical because exchanges often hire firms that may lack the technical expertise or the necessary objectivity to perform a deep-dive audit.

True independence ensures that the auditor can report honestly on the exchange's solvency without fear of losing future business or facing pressure from management. Without this, audits can become performative exercises that provide a false sense of security to investors.

It is a cornerstone of regulatory trust and market integrity.