The Virtual Assets Regulatory Authority (VARA) has issued a circular (3 pages/209 KB PDF) setting out minimum expectations for reserve asset audit reports following a thematic review of all proof-of-reserve reports submitted during 2025. The regulator said the circular is intended to support a “consistent, robust, and sufficiently detailed approach” to assessing and verifying client asset safeguarding arrangements.

Existing VARA rulebooks already require VASPs to maintain at all times reserve assets equal to 100% of liabilities owed to clients, held on a one-to-one basis in the same virtual asset as the corresponding client liability, reconciled daily. The rules require an audit by an independent third-party auditor.

The circular…