FCA & regulation
Proof of reserves — what exchange attestations mean
Quick answer: Proof of reserves shows a snapshot that customer liabilities may be matched by assets held — at one moment. It is not FSCS protection, not a guarantee against insolvency, and may not cover all liabilities.
After major exchange failures, some platforms publish proof-of-reserves reports. Customers often misunderstand what these prove.
Reviewed by Digital Assets Team
Not financial advice. This guide is general information only, fact-checked against UK government sources. It is not a personal recommendation. Cryptoassets are high-risk. You may lose all the money you invest.
What PoR typically shows
An auditor or firm compares customer token balances to wallets controlled by the exchange at a point in time. Methodology varies.
What PoR does not show
Hidden debts, related-party loans, quality of custody, or future solvency. Celsius and others looked fine until they were not.
Frequently asked questions
Should I trust an exchange because of PoR?+
Treat it as one data point only. FCA registration, your own custody choices, and not over-concentrating funds matter more.