CoinSwitch Launches New Service for High Net Worth Individuals: Details
Indian crypto exchange CoinSwitch is expanding its service portfolio to now cater to high net worth individuals (HNIs) and institutional investors. In an announcement shared on Thursday, September 5, the Mumbai-based exchange said that with the service, it aims to provide HNIs with personalized investment advice and detailed risk management solutions, among other inputs. In India, crypto-related activities such as investing, trading, and holding are permitted and fall under the government’s tax regime.
Speaking to Gadgets360, Balaji Srihari, Business Head of CoinSwitch, said that the recent approval of crypto exchange traded funds (ETFs) in the US has fueled institutional investors’ interest in crypto investing.
According to StatisticsBlackRock’s Bitcoin ETF alone has seen inflows of around $15 billion (approximately Rs 1,30,178 crore) since its launch in January 2024. ETFs allow investors to trade crypto via traditional exchange platforms, eliminating the need to register with crypto-specific exchanges and platforms.
“We are already seeing a growing demand for advanced investment solutions among HNIs and institutions. This new service is designed to meet that demand and provide users with the tools they need,” Srihari told Gadgets360.
A dedicated section for this service has been added to CoinSwitch’s main website for now. In this tab, interested investors will have to fill in personal details and select an account type, after which they will be contacted by company-assigned executives.
CoinSwitch claims that its team of experts will assist institutional investors with tailored investment strategies, dedicated account management, professional tax filing, and exclusive market access.
Moreover, the exchange said, it will provide ‘institutional security’ to the HNIs. Elaborating on this, Srihari noted, “We use top-notch asset storage solutions, advanced security protocols and robust risk management practices to ensure this. Our custodians insure assets in storage and in transit. They are also SOC 2 Type II certified and are regularly pen-tested by globally renowned cybersecurity groups.”
The wallets that store CoinSwitch balances, according to the company’s CEO, offer multi-party computation (MPC) capabilities, eliminating the risk of a single point of compromise during the key lifecycle.
In India, discussions over cryptocurrency security have grown louder after a hack on WazirX led to the theft of $230 million (approximately Rs. 1,900 crore) on July 18. The incident that left WazirX users in distress and caused financial losses raised questions over the kind of security arrangements that crypto exchanges are looking at amid rising crypto hacks.
CoinSwitch declined to reveal the identities of its “custody partners” responsible for protecting user assets. Additionally, the exchange did not disclose what percentage of user funds are stored in a single wallet.
However, Srihari did state that “the majority of digital assets are stored in secure cold wallets. At any given time, we only store a small percentage of our assets in hot wallets and external exchanges. This allows us to work with multiple partners and minimize systemic risks.”
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information contained in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
