CoinSwitch reveals summary of proof of reserves amid FTX crash


As CoinSwitch Crypto Exchange reveals summary of proof of
reserves that shows adequate reserves to cover clients stake. per the proof of
reserves summary published recently by the crypto exchange in India, CoinSwitch,
the exchange has a larger amount of total holdings of crypto and fiat balances
in Indian Rupees (INR) compared to those held by the exchange on behalf of its
users.
A consulting company, INMACS was
hired by the company CoinSwitch, for investigation which was launched in July
2022. The firm INMACS did an extensive and independent review, using snapshots
of web logins on the web portal of sources shared by CoinSwitch. These snapshots
are taken from company’s bank accounts, payment gateways used by CoinSwitch, detailed
listings of crypto custody services, as well as counterparty sources including crypto
exchanges and wallet addresses from CoinSwitch.
By doing this, CoinSwitch users
have full visibility into their investments and funds. According to CoinSwitch
hot and cold wallets of crypto exchange can help customers understand the
intermediary without completely giving a clear picture of the business and
financial vulnerability of the company. The exchange has never used its users'
cryptocurrency and INR balances for lending or borrowing said CoinSwitch.
In accordance with the Indian
Standards on Related Services (SRS 4400) published by the Institute of
Chartered Accountants of India, INMACS carried out the Agreed-Upon Procedures
(AUP) in November 2022. The examination followed the International Standard
(ISRS) 4400, a global standard and set of instructions for carrying out
established procedures involving financial information.
The sudden downfall of one of thebiggest cryptocurrency exchanges in the world FTX.com led exchanges to
demonstrate the significance of proof of reserves in restoring trust in the
sector. For all stakeholders in the industry, gaining the trust of users and
outside observers became the top priority.
The founder of world’s largest
crypto exchange Binance, Changpeng Zhao, said that Ethereum founder, Vitalik
Buterin proposed to create proof-of-reserves protocol for which Binance will be
used as its first test case. A South Korean cryptocurrency exchange, Korbit, has
announced to publish its full list of crypto reserves on its website.
About INMACS
INMACS is a 38-year-old Indian
public limited corporation created by. Mr. Vinod Jain, who is a skilled
Chartered Financial Analyst. It specializes in assurance, taxation, regulatory
consultancy, and risk management.

Indrani bose
CBW - External Analyst
INDIA