Why Do Indian Crypto Exchanges Remain Silent In Showing Their Proof Of Reserve?🤔🤔🤔

From the concept of proof of work (PoW) to proof of stake (PoS) to now the proof of reserves (POR), the jargon in the cryptocurrency market keeps on changing from time to time, 

But What Is Proof Of Reserves (PoR) & Why It Is So Important? 

In simple words, Proof of reserves is a way for a cryptocurrency exchange to show that they have enough money on hand to cover all of their customers' deposits. Most of the time, this is done by giving a third-party auditor access to the exchange's wallet addresses. This lets the auditor check the balances and make sure the exchange has enough money to cover all customer deposits. This is a very important step to make sure the exchange has enough money to pay out all withdrawals.

Is Proof Of Reserves (POR) Necessary? 

Although proof of reserves is not required, it can assure customers that their funds are safe and secure. In the world of cryptocurrency, where many exchanges have lost or stolen customer funds, providing proof of reserves can help to build trust and confidence in the exchange. It can also help to prevent exchange runs, which occur when customers attempt to withdraw all of their funds at once, which can be disastrous for an exchange that does not have enough funds on hand to cover all of the withdrawals. As a result of these considerations, many exchanges choose to provide proof of reserves as a means of demonstrating their financial stability and commitment to their customers.

List Of Exchanges Given Their Proof Of Reserves (PoR), 

• Crypto.com
• Okx
• Kucoin
• Binance
• Bitfinex
• Huobi
• Bybit
• Gate.io
• Deribit
• SwissBorg
• Korbit
• CoinSquare
• MaskEx
• CoinDcx
• Firi
• NBX

Is Proof Of Reserves Can Be Manipulative?

Evidence of reserves can be manipulated, either by the exchange or by a third-party auditor. For example, the exchange could provide fictitious wallet addresses or alter the balances in their wallets to appear to have more funds on hand than they do. Similarly, a third-party auditor could be bribed or coerced into providing a false report. For these reasons, customers should thoroughly research and evaluate any exchange that provides proof of reserves and look for other indicators of financial stability and trustworthiness. Exchanges should also use reputable and independent third-party auditors to verify their proof of reserves.

Issues With The Indian Crypto Exchanges & Their Proof Of Reserves?

In India, only CoinDcx has published its (PoR), & Wazirx recently tweeted, that team is working on (PoR), But why do other Indian Crypto exchanges remain silent on PoR? 

The silence points could be because of the two reasons enumerated below:

1. From the beginning itself, the Indian Government's stance on cryptocurrency has not been very welcoming. In 2022, the Government introduced an extensive tax of 30%. One of the reasons why the exchanges remain silent on their PoR could be because either they do not have the requisite funds or they do not wish to come under Government’s radar. 
2. The other reason could be the decline in trading volume. If the 30% tax wasn’t enough, the Indian Government levied 1% TDS also, further leading to declining in trading volume. It might be the case that the exchanges either do not have enough volume or that do not have real-time customers to show in the public domain.

The silence of Indian Crypto Exchanges speaks volumes about their intentions or it is just to keep the information within themselves is a big question in itself.