# Proof of reserves — what exchange attestations mean

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.

## Key facts
- Snapshot only — not continuous.
- Does not replace regulation.
- Off-balance-sheet risks may exist.
- FSCS still does not apply.
- Prefer FCA-registered firms.

## 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.

## FAQs
### 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.

## Sources

- [FCA — Cryptoassets for consumers](https://www.fca.org.uk/consumers/cryptoassets)

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— Digital Assets UK (https://digital-assets.co.uk/regulation/proof-of-reserves-explained/), reviewed 2026-06-23. Source: https://www.fca.org.uk/consumers/cryptoassets