Cryptocurrency platform CoinSwitch has reaffirmed its commitment to transparency and trust-building by publishing its third Proof of Reserves (POR) report. The report, independently reviewed and validated on-chain, confirms that the company's total holdings of cryptocurrency and Indian Rupees (INR) surpass its customers' balances.
As of March 31, 2024, the INR equivalent value of CoinSwitch's total holdings, encompassing both crypto and INR balances, stands at INR 3,497.22 crore. User holdings on the platform, including crypto and INR, amount to INR 2,774.10 crore. This signifies a holdings ratio of 1:1 or more, demonstrating that CoinSwitch holds enough assets to cover all user withdrawals at any given time. The POR assessment notably excludes assets held by PeepalCo, CoinSwitch's parent brand, further solidifying the platform's robust financial position.
“Trust is the foundation of every successful business relationship. At CoinSwitch, we understand that earning and keeping the trust of our users is paramount. Our third Proof of Reserves demonstrates our commitment to transparency and accountability — giving our customers full confidence that their assets are safe and secure with us," said Balaji Srihari, Business Head of CoinSwitch.
The review was conducted in accordance with the standards set by the Institute of Chartered Accountants of India (SRS 4400). The assessment meticulously verified that CoinSwitch maintains a 1:1 ratio against both total customer holdings (including crypto and INR) and customer holdings of Virtual Digital Assets (VDAs or crypto).
CoinSwitch also enables users to independently verify their crypto holdings by providing public wallet addresses accessible through blockchain explorers. This allows for real-time tracking of the platform's crypto assets. Additionally, the company assures users that it employs industry-grade security solutions to safeguard their crypto holdings.
This proactive approach to transparency comes amidst increased regulatory scrutiny of the crypto sector in India. The Indian government has mandated FIU registration for Web3 firms to enhance security and combat financial crime, underscoring the importance of building trust and promoting responsible practices within the evolving Web3 landscape.