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.
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.
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