CoinSwitch Releases Third Edition of Proof of Reserves for Cryptocurrency Exchange | Startup News

CoinSwitch, the crypto exchange, made an announcement on Thursday regarding their latest proof of reserves (PoR) data, indicating that their crypto and Indian currency balances are more substantial than those held by their customers.

CoinSwitch’s crypto assets are valued at Rs 3,497.22 crore, in contrast to their user’s crypto assets that are worth Rs 2,774.10 crore, as the company stated.

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PoR acts as verification that a financial institution possesses the claimed assets. This audit is disseminated by cryptocurrency firms to assure customers about the liquidity of a custodian or a platform, offering assurance that their funds are accessible for withdrawal at any given moment and providing clarity on the holdings of both users and the crypto exchange. 

According to the prior PoR published last July, the crypto entity’s assets, both in cryptocurrency and Indian currency, amounted to Rs 1,944.8 crore, while customer holdings totaled Rs 1,431.30 crore.

The company maintains a policy of a 1:1 holdings ratio or better, ensuring they possess all assets and fiat balances belonging to users, which allows for the redemption or withdrawal of these assets at any moment.

“The basis of every enduring commercial relationship is trust. At CoinSwitch, earning and sustaining our users’ trust is a top priority. Showcasing our third PoR exemplifies our dedication to transparent and responsible conduct, solidifying our users’ confidence that their assets are well-protected with us,” remarked Balaji Srihari, business head at CoinSwitch.

Established in 2017, CoinSwitch boasts a user base exceeding two million.