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"[As it is,] exchanges can easily continue to operate for years with whatever level of reserves they like. Nothing prevents exchange owners from spending cryptocurrency stored by users, or failing to disclose if reserves are breached. Third party audits are riddled with holes like:

How can they know the client list they're given is legitimate and fully inclusive?

How can you know the funds weren't borrowed for the audit purposes?

How old is the report? How can you trust the auditor?

On top of that - most exchange platforms still don't even bother to audit. Despite the warnings about storing funds on exchanges, people still do. And remember that many affected users weren't storing funds on Quadriga - they simply got stuck with no way to withdraw."