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How are Indian crypto exchanges offering transparency to investors following FTX’s collapse?

CoinSwitch, CoinDCX, and WazirX say they have adequate reserves amid FTX’s bankruptcy and a downturn for crypto globally

Several Indian crypto exchanges have rushed to assure investors that their assets and investments are safe in the aftermath of the FTX collapse. For example, CoinSwitch issued a statement that it had commissioned an audit by an independent firm, INMACS, in July 2022 to evaluate the company. The company claimed that the report confirmed that Coinswitch’s overall holdings of crypto and rupee balances are higher than those of user’s holdings of Crypto and INR balances on its platform. CoinDCX’s CEO and Co-founder Sumit Gupta issued a statement that the exchange had no exposure to either FTX or Alameda. He clarified that they maintain user liability to assets at 1:1. Moreover, he added that the exchange had a “fairly strong cash-rich balance sheet”. “We do not have any assets/exposure with FTX or any exposure to FTT, SOL (Solana). We do not rely on their liquidity provisions for any of our products,” Sumit Gupta said in a statement, adding that the exchange had enough capital to sustain operations for at least five years even at zero revenue. Why it matters: The announcements by these companies are notable as Indian crypto investors are feeling the pinch following FTX’s collapse. Their problems are only compounded by the double whammy of crypto taxation and a bear market. These disclosures will go a long way in offering transparency to investors whose confidence in crypto exchanges is at a low following FTX’s collapse. It also suggests that Indian crypto exchanges are leaving no stone unturned to instill…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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