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CoinDCX introduces protection fund to secure Indian crypto users
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2024-08-07 08:08:00
Josh O"Sullivan30 minutes agoCoinDCX introduces protection fund to secure Indian crypto usersCoinDCX"s Crypto Investors Protection Fund will enhance user security by allocating 2% of brokerage income annually to safeguard assets.122 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onCoinDCX, one of India"s leading cryptocurrency exchanges, has introduced the Crypto Investors Protection Fund (CIPF), aiming to establish a higher security standard within the Indian crypto market.
A press release shared with Cointelegraph states that the CIPF “is designed to compensate users for losses incurred in extremely rare scenarios.”
This user compensation includes “security breaches or other adverse events” and will feature an initial allocation of 50 crore rupees, worth around $595,800.
Speaking with Cointelegraph, Sumit Gupta, co-founder of CoinDCX, explained that the firm has implemented a “comprehensive, multi-layered security strategy.”“We implement industry-leading security measures, including multiparty computation (MPC), two-factor authentication (2FA), and advanced encryption to safeguard user data and assets.”
Related:India demands $86M from Binance in unpaid GST taxesUser security measures
CoinDCX will contribute 2% of its brokerage income to the CIPF annually, with plans to review and potentially increase the fund size over time.
In the press release, Gupta explained that the CIPF will provide additional protection for users in an “extremely rare event” involving a “security breach or adverse event.”
“We will continue to monitor the fund’s size, maintaining the balance at a level adequate to safeguard our users assets.”
Related:India’s Web3 alliance tightens cybersecurity after WazirX attackCoinDCX acquisition of BitOasis
On July 3, CoinDCX acquired BitOasis, a virtual asset trading platform in the Middle East and North Africa (MENA) region.
The acquisition of one of the highest trading volume platforms in Emirati dirhams marked CoinDCX’s first entry into the MENA market and expansion by the crypto firm.
The user experience on both platforms was anticipated to improve post-acquisition after the promise to broaden product offerings and increase trading and token range options.
Related:Indian crypto exchanges lure in Binance, OKX investors after FIU banIndia crypto implication post-WazirX hack
The $235 million hack of the Indian crypto exchange WazirX on July 18 raised significant concerns about the future of crypto and exchange security in India.
On July 22, Utkarsh Tiwari, the chief strategy officer for the Indian crypto exchange KoinBX, discussed the magnitude of the hack and the Indian government’s stance to protect investors “above all else.”
Tiwari predicted that Indian digital asset exchanges will likely invest in security infrastructure to help protect the Indian digital asset market and community.
Magazine:How crypto bots are ruining crypto — including auto memecoin rug pulls# Blockchain# Cryptocurrencies# India# Tokens# Hacks# Regulation# WazirXAdd reaction