In April 2023, the CCSS steering committee was presented with questions from a CCSS Auditor (CCSSA) regarding the Proof of Reserves Aspect (PoR) of the CryptoCurrency Security Standard (CCSS). The questions posed came to light in the context of scoping and preparing for the CCSS audit of a large exchange. After consideration, the CCSS Steering Committee decided that the questions about the nature, scope, testing requirements, and sufficiency of proof when testing for the Proof of Reserves Aspect warranted a PoR sub-group that would work to make recommendations.
The working group on the PoR Aspect concluded that: (1) it would be appropriate at this time, and beneficial to the Standard to remove the PoR Aspect; and (2) after much consideration, it would not be appropriate at this time to add a replacement or supplement to the PoR Aspect.
Rather, the Working Group determined that, “Key Control” would be an appropriate Aspect to add to the Standard and that the best course of action would be to:
The CCSS committee was presented with the above information regarding the Working Group findings and during a committee call voted unanimously (1) to remove the PoR Aspect from the Standard; and (2) not add a replacement or supplement to the PoR Aspect at this current time.
Date of CCSS update: May 22, 2023
The Committee acknowledges the importance of Proof of Reserve within the cryptocurrency ecosystem and suggested that a PoR working group reconvene in the future to continue to address this subject.
Note: the Committee will discuss and implement a formal change control cycle for the Standard.
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