CoinDCX, one of India’s leading cryptocurrency exchanges, has unveiled the Crypto Investors Protection Fund (CIPF) to elevate security standards within the Indian crypto market. This initiative is designed to compensate users for losses incurred in extremely rare scenarios, such as security breaches or other adverse events, ensuring a higher level of protection for investors.
The CIPF features an initial allocation of 50 crore rupees (approximately $595,800) and will be funded by 2% of CoinDCX’s annual brokerage income. This proactive measure underscores CoinDCX’s commitment to maintaining user trust and enhancing security. The fund’s size will be reviewed periodically to ensure it remains adequate to safeguard users’ assets.
Sumit Gupta, co-founder of CoinDCX, emphasized the exchange’s robust security strategy, which includes industry-leading measures like multiparty computation (MPC), two-factor authentication (2FA), and advanced encryption to protect user data and assets. Gupta highlighted that the CIPF will provide an additional layer of protection in the event of a security breach, reinforcing CoinDCX’s dedication to user security.
CoinDCX recently acquired BitOasis, a prominent virtual asset trading platform in the Middle East and North Africa (MENA) region, marking its expansion into new markets. This acquisition aims to enhance user experience and broaden product offerings, further strengthening CoinDCX’s market presence.
The announcement of the CIPF comes at a crucial time, following a significant hack at WazirX, another Indian crypto exchange, which resulted in a loss of $235 million. This incident raised concerns about the security of crypto exchanges in India and highlighted the need for improved security measures. CoinDCX’s initiative is a significant step toward building long-term trust in the Indian crypto ecosystem.
CoinDCX’s commitment to security is further demonstrated by its adherence to regulatory standards and guidelines, regular security audits, and compliance checks. The exchange is ISO 27001:2022 certified and the first FIU-registered exchange in India, ensuring the highest level of information security.
In summary, the launch of the Crypto Investors Protection Fund by CoinDCX represents a pivotal move to enhance user security and build investor confidence in the Indian cryptocurrency market. By dedicating a portion of its revenue to safeguard assets, CoinDCX is setting a new standard for security and trust within the industry.
