Highlights:
- CoinDCX launches Crypto Investors Protection Fund (CIPF) with INR 50 crore for user protection
- CIPF serves as insurance, and CoinDCX enhances security with multi-location storage and regular audits
- Following WazirX’s $230M hack, CoinDCX aims to build trust and set industry security standards
CoinDCX, India’s largest crypto exchange, has created the Crypto Investors Protection Fund (CIPF). The fund aims to compensate users for rare losses, such as security breaches or other incidents. With an initial allocation of INR 50 crore, the CIPF shows CoinDCX’s commitment to maintaining trust in the crypto ecosystem.
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We're here to set new standards in the Indian crypto ecosystem, fostering long-term trust and security.
Introducing Crypto Investors Protection Fund (CIPF). With an initial allocation of INR 50 crore, we are committed to adding 2% of brokerage income to the… pic.twitter.com/aTDb9asb9u
— CoinDCX: India's Safest Crypto Platform (@CoinDCX) August 7, 2024
CoinDCX’s Security Measures and CIPF Implementation
CoinDCX has set up a governance framework for the credit and utilization of the CIPF to ensure effective management and transparency. The exchange aims to strengthen trust in India’s growing crypto market by prioritizing advanced security procedures like two-factor authentication (2FA) and multi-party computation (MPC). According to the firm, establishing the CIPF demonstrates its dedication to protecting India’s crypto investors.
The CIPF will act like an insurance policy for users’ crypto investments. The company has taken additional measures to protect investor funds by storing customers’ assets in multiple locations, providing extra protection from hackers. The exchange also plans to build customer trust by openly declaring the amount of money it holds and its storage locations. Furthermore, CoinDCX emphasized its commitment to following government regulations with regular security checks to ensure proper functioning.
CoinDCX’s Commitment to Trust in Indian Crypto Market
CoinDCX claims to be the first officially registered Indian crypto exchange with an ISO 27001:2022 certification. With over 30 million crypto investors in India, the exchange plans to build more confidence in crypto investment by creating a trustworthy and safer cryptocurrency market.
Sumit Gupta, co-founder of CoinDCX, reaffirmed that security is the platform’s top priority. He emphasized that the CIPF, while not preventing unfavorable events, would protect in case they occur.
1/ 🚨 Important Update! INR 50 Crore Crypto Investors Protection Fund (CIPF)@CoinDCX has been operating for over 6 years, and we are grateful for all the trust and support we have received from customers that have helped us grow and push India’s crypto and Web3 ecosystem… pic.twitter.com/LBPCuM5onM
— Sumit Gupta (CoinDCX) (@smtgpt) August 7, 2024
Sumit Gupta stated, “The CIPF will be one of its kind and a significant step towards building long-term trust in the Indian crypto ecosystem.” He also urged India’s crypto enthusiasts to stay tuned for future details about the CIPF framework.
Security with New Protection Fund Amid Industry Challenges
The exchange uses top security measures, including multi-party computation (MPC), two-factor authentication (2FA), and advanced encryption. CoinDCX follows all regulatory standards and guidelines, conducting regular security audits and compliance checks to meet safety and security requirements. This robust security framework is vital to protecting and maintaining the integrity of users’ assets on its platform.
Established in 2018, CoinDCX is trusted by over 15 million registered users. The announcement of the CIPF comes shortly after CoinDCX’s competitor, WazirX, suffered a major cyberattack. Hackers stole $230 million in crypto assets, representing 45% of total user funds held on the platform. This major cyberattack on an Indian crypto exchange underscores the need for robust security measures in the crypto industry.
Establishing the Crypto Investors Protection Fund by CoinDCX marks a significant step in the Indian crypto market. CoinDCX is committed to security and transparency to build trust and safeguard investors in the expanding crypto market. As the largest crypto exchange in India, CoinDCX’s commitment to maintaining high-security standards sets a benchmark for the industry, ensuring a safer environment for all crypto investors.
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