CoinSwitch reserves total Rs 2,774.10 Cr, down 28% since March this year
Crypto exchange CoinSwitch has ensured that customer holdings in both INR and cryptocurrencies are maintained in a 1:1 ratio or more, sufficient for all user redemptions.
CoinSwitch on Tuesday released its fourth edition of Proof of Reserve (POR) showing a total holding of Rs 2,774.10 crore, including in cryptocurrencies and Indian Rupees (INR)—a 28% decline since March 2024.
Ashish Singhal, Co-founder of CoinSwitch, told YourStory that the dip in INR holdings is primarily due to two reasons—firstly because the company used funds from its treasury to replenish user crypto following the alleged hack of crypto exchange WazirX, and secondly, as crypto prices have fallen, users have started using their INR balance to buy more crypto on CoinSwitch.
However, the company maintained a holdings ratio of 1:1 or more. A ratio of 1:1 or higher means the platform holds as much or more than its users’ crypto and INR balances, which allows its customers to redeem or withdraw their holdings at any time.
It said the total user crypto holdings amount to Rs 1880.84 crore, while CoinSwitch’s total crypto holdings stand at Rs 2245.91 crore.
In the previous edition of the platform’s POR report, the total customer crypto holdings stood at Rs 2,609.12 crore and the company's total crypto holdings was Rs 3,045.45 crore.
“Given what has happened in the Indian crypto industry recently, we need to be more transparent and accountable to our users. At CoinSwitch, safeguarding our users' funds is not just a responsibility—it’s the core of everything we do. We understand the trust our users place in us when they invest and trade on our platform, and we take that trust seriously,” said Balaji Srihari, Business Head at CoinSwitch, in a statement.
The crypto firm added that the assets held by its parent company, PeepalCo, are in addition to these funds and are not included in this POR assessment.
The company, in August, said it was suing rival platform WazirX to recover assets stuck with the crypto exchange. WazirX is dealing with a cyberattack that led to $230 million worth of digital assets being stolen.
On October 21, Singhal took to social media platform X to say that WazirX has moved around $73.63 million worth of remaining crypto assets to global exchanges Bybit and KuCoin.
In an interview with YourStory, Singhal added that the WazirX hack had no bearing on CoinSwitch’s reserves.
(The copy has been updated)
Edited by Suman Singh