In reply to the #ProofOfKeys movement


Dear users,

The digital asset trading platforms like Unocoin/Unodax act as a custodian of the digital assets that their users choose to trust with them either for parking those digital assets or for trading/exchanging those digital assets. The customers trust that the digital assets are safe on the exchange but will not have any way to know for sure without attempting to withdraw their digital assets. However, because not every user will withdraw the funds at the same time, the exchanges may work with partial reverses and go unnoticed. The #ProofOfKeys is a movement started which requested all the users of exchanges to withdraw the digital assets to their own wallets on 2nd of Jan 2019 which is on the 10th birthday of bitcoin. This feat is quite a challenge to make it happen as it needed every user of every exchange to withdraw their digital assets to their own wallets – it has both practical and technical challenges at the user end to overcome. Since 2013, Unocoin has been tirelessly serving the Indian digital assets community with one of the main goal:  security. @CryptoKanoon has raised a set of general concerns and have solicited official comments from Indian exchanges and here are our comments about the same. We sincerely appreciate @CryptoKanoon’s efforts in this direction and we are glad to find an opportunity to address these concerns as these are also the general concerns of a knowledgeable user of any exchange. 

  1. About user digital asset holdings: We declare that our crypto holdings are equal to or more than the total user’s holdings. (Will be more due to company stocks that we sell from and we buy into from our customers on Unocoin and due to fee we collect on Unodax for certain exchange pairs). We never use these funds to trade or lend ourselves and never send these funds abroad for what so ever reasons.
  2. Simultaneous withdrawals: If all users were to withdraw their digital funds at the same time, we will be able to process all of the transactions within 1 business day.  The 1 business day delay is because this would need authorized people at Unocoin to invoke the digital assets that are behind extra safeguards (which are only possible on a business day and during business hours) as we keep 99%+ of our customer’s funds in cold storage.
  3. Auditing: Although it is difficult for users to verify our claims above, it is impossible for Unocoin to declare the individual user accounts without sacrificing privacy. We conduct periodic audits of our platform by internationally recognized security firms, and our company auditor performs the periodic auditing of digital asset balances. We also are willing to undergo any external audit by a reputed auditing firm like one of the Big fours if needed (even if it is initiated by one of our own users).
  4. Our support: We are in full support of the proof of keys movement and believe that every user has the right to know the status of their funds. As the technology evolves over time and if there emerges a method to prove the holding claims in a way that it won’t sacrifice the security and privacy of involved stakeholders, we are willing to employ the same.

While we do our best to provide the best in class security measures to safeguard our user’s data and their funds, it is important to note that the users also need to understand and employ the best security practices to safeguard themselves at their end. Kindly take this opportunity to read (or re-read) our guidelines here

– Team Unocoin