Indian crypto exchange CoinSwitch’s proof of reserves summary, that was shared on Thursday, stated that as of Nov. 4, the exchange’s overall holdings of crypto and fiat balances in Indian Rupees (INR) exceeded those held by the exchange on behalf of its users.

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Fast facts

• CoinSwitch engaged consulting firm INMACS, which began the research in July 2022, CoinSwitch said in a statement.

• For the review, CoinSwitch provided INMACS with snapshots of detailed listings of crypto custody services, bank accounts, payment gateways used by CoinSwitch as well as counterparty relations with crypto exchanges.

• CoinSwitch, which said it has over 18 million registered users, said the exchange has not used customers’ crypto and INR balance for any lending or borrowing purposes.

• The sudden downfall of FTX.com, one of the largest cryptocurrency exchanges in the world, has been a rude awakening for the digital assets industry and has prompted a growing call by exchanges to show the importance of proof of reserves in rebuilding faith in the sector.

• “There are several other ways to assure liquidity of a crypto platform, including proof of reserves. This report is our effort to affirm that our holdings are greater than what customers have purchased on CoinSwitch,” Ashish Singhal, co-founder of CoinSwitch, said in a statement emailed to Forkast.

• Changpeng Zhao, founder of world’s largest crypto exchange Binance, said earlier this week that Ethereum founder Vitalik Buterin is looking to develop a proof-of-reserves protocol and Binance may be the “guinea pig” to serve as its first test case. Korbit, one of South Korea’s five fully licensed cryptocurrency exchanges, has announced that it will reveal its full list of crypto reserves on its website.

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