CoinSwitch reinforces transparency and trust with third-edition Proof of Reserves
Crypto News: In the ever-evolving landscape of cryptocurrency platforms, building and maintaining trust with users is paramount. CoinSwitch, India’s leading crypto platform, has taken a significant step towards reinforcing transparency and trust with the release of CoinSwitch’s third edition of Proof of Reserves (POR). This initiative not only demonstrates CoinSwitch’s commitment to transparency but also provides users with the assurance that their assets are secure and readily available for withdrawal at any time.
The Proof of Reserves (POR) process conducted by CoinSwitch is a rigorous examination of its total holdings, including both cryptocurrency and INR balances. This verification is crucial as it ensures that CoinSwitch holds assets equal to or greater than the total holdings of its users. The latest POR confirms that CoinSwitch holds INR 3,497.22 crore, while user holdings with the platform amount to INR 2,774.10 crore. This results in a ratio of 1:1 or higher, indicating that CoinSwitch has sufficient reserves to cover all user assets.
What sets CoinSwitch apart is its dedication to transparency and accountability. The POR is not merely an internal audit but is verified through an independent review and on-chain validation. This level of scrutiny ensures that the findings are credible and trustworthy. Furthermore, the review is conducted in accordance with the standards set by the Institute of Chartered Accountants of India, further bolstering the integrity of the process.
It’s noteworthy that CoinSwitch’s parent brand, PeepalCo, holds additional assets that are not included in the POR assessment. This additional layer of reserves provides an extra cushion, further solidifying CoinSwitch’s financial position and its ability to meet user withdrawal demands promptly.
The 1:1 ratio maintained by CoinSwitch against both total customer holdings and crypto holdings underscores its commitment to asset security. This ratio ensures that users’ assets are always backed by an equivalent or higher amount of reserves, minimizing the risk of insolvency or loss.
To provide an additional layer of assurance, CoinSwitch’s crypto holdings are verified through public blockchain addresses. This means that users can independently verify the platform’s crypto reserves, adding another level of transparency to the process. By leveraging blockchain technology, CoinSwitch ensures that its asset holdings are immutable and transparent, further instilling confidence among users.
Central to CoinSwitch’s operations is its robust security infrastructure. The platform employs top-tier security solutions to safeguard user assets against potential threats such as hacking or unauthorized access. By prioritizing user asset protection, CoinSwitch demonstrates its unwavering commitment to ensuring a safe and secure trading environment for its users.
In conclusion, CoinSwitch’s release of the third edition of Proof of Reserves (POR) marks a significant milestone in its journey towards transparency and trust. Through independent verification and on-chain validation, CoinSwitch reaffirms its commitment to maintaining sufficient reserves to cover all user assets. By upholding the highest standards of transparency and security, CoinSwitch sets a benchmark for cryptocurrency platforms, fostering trust and accountability in the industry.
