CoinSwitch Holds Rs 2,764 Crore in Reserves; Ashish Singhal Stresses PoR's Role in Transparency

CoinSwitch, an Indian cryptocurrency platform, has released the fifth edition of its Proof of Reserves (PoR) report, which shows that the platform possesses more Bitcoin and Rupees than its users.

According to the report, CoinSwitch's total reserves as of March 31, 2025, including both cryptocurrency and Indian rupees were Rs 2,764.20 crore, while the total value of its client holdings was Rs 2,138.64 crore. This generates a surplus of Rs 625.56 crore, suggesting that the platform has enough assets to cover its consumers' balances. It maintains a 1:1 or higher ratio of reserves, allowing users to redeem or withdraw their assets at any time.

Ashish Singhal told Outlook Money, "Proof of Reserves (PoR) is essential for ensuring transparency and rebuilding user trust, especially after incidents like the FTX collapse. It provides clarity on how much crypto is held on behalf of users and ensures these assets are verifiable on the blockchain."

The report also reveals that CoinSwitch maintains a 1:1 ratio against user holdings of Virtual Digital Assets (VDAs), such as cryptocurrency. The overall user crypto holdings amount to Rs 2,043.15 crore, while CoinSwitch's total crypto holdings stand at Rs 2,576.54 crore, which shows that they can handle and protect user funds.

The PoR report shows that client holdings have increased by almost ten per cent since the previous edition. According to the report, Bitcoin (BTC) rose in value from Rs 57 lakh in October 2024 to Rs 80 lakh by March 2025.

Furthermore, CoinSwitch's Assets Under Management (AUM) are currently at Rs 2,898 crore and fluctuate with the market value of crypto assets. CoinSwitch has also disclosed its public crypto wallet addresses, allowing users to verify the platform's crypto holdings in real time through blockchain explorers.

Key Measures for Protecting User Assets

While discussing the importance of security in the crypto space, Ashish Singhal, Founder of CoinSwitch said, "Crypto Exchanges could adhere to strict security protocols, such as SOC 2 compliance and multi-party computation wallets, to protect user assets and ensure privacy." Also, he underlined how important these steps are to preserving the integrity of the cryptocurrency ecosystem.

Crypto Taxation and Regulation Challenges

While reserves reflect financial transparency, Singhal also spoke about the regulatory foundations needed to protect users in the long run.

Ashish comments that crypto is currently taxed at 30 per cent on profits, but users cannot offset their losses. Also, there is a 1 per cent TDS on every transaction, which can tie up user capital for extended periods. He emphasizes that taxation needs reform to allow loss offset and lower TDS thresholds. Regarding regulation, he believes India requires a licensing regime to ensure crypto companies follow specific rules, similar to the stock market, to protect users and ensure accountability.