CoinSwitch Balance Sheet Verified by Outsider Amid Crypto Crash
The crash of the FTX crypto exchange last week brought the entire crypto sector out of the focus of investors. In the wake of this industry shake-up, Indian crypto exchange CoinSwitch Kuber said it has received verification of its balance sheets from a private company. Home-grown consultancy INMACS was roped in to ensure that all assets held by CoinSwitch are superior to those held by clients – a step taken to restore investor confidence.
The crypto exchange is actually looking to strengthen its compliance frameworks. The reason why it chose INMACS is because of its physical relationship with the Institute of Chartered Accountants of India. It has been doing its verification process on CoinSwitch since July 2022.
“Transparency and traceability are important things for us. The independent INMACS report is a testament to our commitment and a proactive approach to risk and compliance,” said Ashish Singhal, founder and CEO, CoinSwitch in a press release.
It is noteworthy, however, that the report confirms CoinSwitch’s fund adequacy as of November 4, 2022, more than two weeks ago. Between then and now, most crypto exchanges have seen a decline in their business.
“As of November 4, 2022, the total value of CoinSwitch is greater than the total number of users. Meaning, the total amount of INR and Crypto managed by CoinSwitch is greater than the Crypto and INR managed by CoinSwitch on behalf of its users, ” blog post by CoinSwitch said.
The FTX crypto exchange has been in turmoil this month due to a lack of funds. The sequence of events brought the total crypto market down to $857.16 billion from its trillion-dollar estimate last week.
Amidst this chaos, another Indian crypto exchange Giottus has recently confirmed that it is ready to provide proof of storage to its users, in order to initiate more involvement in its platform.
Singhal also acknowledged that the choice Giottus made is an option to wire up more users.
This independently reviewed Evidence of Reserves report is one such initiative.
You can read more about why we think independent review is the right way forward here:https://t.co/aRY1eziD03
– Ashish Singhal (@ashish343) November 17, 2022
Proof of reserves are documents and proof that the crypto exchange has enough assets to handle all withdrawals in case of emergency.
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