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Reserves exceed customer holdings and can cover all user redemptions: Cryptocurrency exchange CoinSwitch
Cryptocurrency platform CoinSwitch has reaffirmed its commitment to transparency and trust-building by releasing its third Proof of Reserves (POR) report. The report, independently reviewed and validated on-chain, confirms that the company’s total cryptocurrency and Indian Rupee (INR) holdings exceed its customers’ balances.
As of March 31, 2024, the INR equivalent value of CoinSwitch’s total holdings, which includes both crypto and INR balances, stands at INR 3,497.22 crore. User holdings on the platform, including cryptocurrencies and INR, stand at INR 2,774.10 crore. This means a holding ratio of 1:1 or more, demonstrating that CoinSwitch holds enough assets to cover all user withdrawals at any given time. The POR rating notably excludes assets held by PeepalCo, CoinSwitch’s parent brand, further solidifying the platform’s strong financial position.
“Trust is the foundation of every successful business relationship. At CoinSwitch, we understand that earning and maintaining the trust of our users is critical. Our third proof of reserve demonstrates our commitment to transparency and accountability, giving our customers full confidence that their assets are safe and secure with us,” said Balaji Srihari, Chief Business Officer at CoinSwitch.
The audit was conducted in accordance with the standards established by the Institute of Chartered Accountants of India (SRS 4400). The assessment meticulously verified that CoinSwitch maintains a 1:1 ratio to both total customer holdings (including cryptocurrencies and INR) and customer holdings in virtual digital assets (VDA or cryptocurrencies).
CoinSwitch also allows users to independently verify their cryptocurrency holdings by providing public wallet addresses accessible via blockchain explorer. This allows for real-time monitoring of the platform’s crypto assets. Additionally, the company assures users that it uses industrial-grade security solutions to safeguard their cryptocurrency holdings.
This proactive approach to transparency comes amid increased regulatory scrutiny of the cryptocurrency sector in India. The Indian government has mandated FIU registration for Web3 companies to improve security and fight financial crime, underscoring the importance of building trust and promoting responsible practices in the evolving Web3 landscape.