CoinSwitch: CoinSwitch holds sufficient reserves to match customer investments: Independent firm confirms

Synopsis

INMACS obtained individual Indian fiat currency (INR) balances with banks, payment gateways, and crypto exchanges using snapshot of web-logins on the web-portal of these sources or banks, payment gateways, and crypto exchanges statements of account provided by CoinSwitch.

Spotlight WireIndian crypto investment platform CoinSwitch has come up with an independent third-party report to confirm that its overall holdings of crypto and Indian currency balances are higher than those of customers’ holdings of crypto and Indian currency balances on CoinSwitch platform.

CoinSwitch engaged a consulting firm INMACS to ensure its compliance structure in July 2022 to study the process and procedure of the company and carry out agreed-upon procedures (AUP) in November 2022.

The agreed-upon procedures executed by INMACS are under Indian Standards on Related Services (SRS 4400) issued by the Institute of Chartered Accountants of India, compatible with International Standard (ISRS) 4400.

Here are the process requirements of the report:

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View Details »● INMACS obtained a detailed listing of crypto custody services, counter-party sources, including crypto exchanges, and wallet addresses from CoinSwitch, using a snapshot of web-logins on the web-portal of these sources provided by CoinSwitch.

● INMACS obtained individual Indian fiat currency (INR) balances with banks, payment gateways, and crypto exchanges using snapshot of web-logins on the web-portal of these sources or banks, payment gateways, and crypto exchanges statements of account provided by CoinSwitch.

● INMACS also obtained a detailed listing of customer holdings with CoinSwitch in Virtual Digital Assets (VDA) and cryptos directly from CoinSwitch’s database.

● It then compared the total CoinSwitch’s VDA and Indian Currency holdings with customers’ VDA and INR holdings to understand whether total CoinSwitch holdings were greater or less than customer holdings.

INMACS is a 38-year-old public limited company registered in India that specialises in assurance, taxation, regulatory advisory, and risk management, among other services.

In its findings, INMACS successfully completed the agreed-upon procedures and found that total CoinSwitch holdings are greater than customer holdings.

That means that the total Indian rupee and VDA holdings held by CoinSwitch are greater than the VDA and Indian currency held by CoinSwitch on behalf of the users of its platform.

“Transparency and traceability are business imperatives for us. We are committed to building a multi-asset buy-sell platform that users can trust,” said Ashish Singhal, Co-founder and CEO, CoinSwitch.

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, he added.

Venture capital giants Andreessen Horowitz’s and Tiger Global are among the key investors of CoinSwitch. The crypto unicorn also counts Sequoia Capital, Ribbit Capital, Paradigm, and Coinbase Ventures among its investors. Print EditionPrint EditionThursday, 17 Nov, 2022Experience Your Economic Times Newspaper, The Digital Way!Read Complete Print Edition »

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    Updated: 11/17/2022 — 09:00