CoinDCX introduces protection fund to protect Indian crypto users
CoinDCX, one of the leading cryptocurrency exchanges in India, has introduced the Crypto Investors Protection Fund (CIPF) with the aim of establishing a higher level of security in the Indian crypto market.
In a press release shared with Cointelegraph, the CPF is “designed to compensate beneficiaries for the rarest of injuries.”
This user compensation covers “security breaches or other adverse events” and shows an initial allocation of 50 crore rupees, which is about $595,800.
Speaking to Cointelegraph, CoinDCX co-founder Sumit Gupta explained that the company has implemented a “comprehensive, multi-layered security strategy.”
“We implement industry-leading security measures including multi-party computing (MPC), two-factor authentication (2FA) and advanced encryption to protect user data and assets.”
RELATED: India Sues Binance for $86M in Unpaid GST Taxes
User safety measures
CoinDCX contributes 2% of its brokerage revenue to the CIPF annually, with plans to review and increase the amount of the fund over time.
In a press release, Gupta said CPF would provide additional protection to consumers in “very rare” cases involving a “security breach or adverse event”.
We will continue to monitor the size of the fund, maintaining the balance at a level sufficient to protect our users' assets.
Related: India's Web3 alliance to strengthen cyber security after Wazirx attack
CoinDCX access to BitOasis
On July 3, CoinDCX acquired BitOasis, a virtual asset trading platform in the Middle East and North Africa (MENA) region.
Achieving the highest trading volume platform in Emirati Dirham marks CoinDCX's first entry into the MENA market and expansion by the crypto firm.
The user experience on both platforms is expected to improve post-purchase following promises to expand product offerings and increase trading and token range options.
Related: Indian crypto exchanges Binance, OKX attract investors after FIU ban
India's crypto implications post-WazirX hack
The $235 million hack of Indian crypto exchange WazirX on July 18 has raised concerns about the future of crypto and exchange security in India.
On July 22, Utkarsh Tiwari, chief strategy officer of Indian crypto exchange KoinBX, discussed the scale of the hack and the Indian government's stance on protecting investors “above all else.
Tiwari predicted that Indian digital asset exchanges could invest in security infrastructure to protect the Indian digital asset market and society.
Magazine: How Cryptobots Are Ruining Crypto — Including Auto Memecoin Carpet Pulling
