- CoinDCX has introduced a Crypto Investors Protection Fund (CIPF) with an initial allocation of $595,800 to cover rare losses like security breaches
- CoinDCX will contribute 2% of its brokerage income to the CIPF each year, with plans to review and potentially increase the fund size
- The move comes in response to the $230 million WazirX hack, highlighting a growing focus on enhancing security in the Indian crypto market
CoinDCX has launched the Crypto Investors Protection Fund (CIPF) to enhance user security in the crypto market. With an initial allocation of around $595,800, the CIPF aims to compensate for losses in extremely rare scenarios, such as security breaches.
CoinDCX’s $595K Fund to Shield Users from Uncommon Crypto Losses
CoinDCX, one of India’s top cryptocurrency exchanges, has launched the Crypto Investors Protection Fund to help boost security in the Indian crypto market. In a press release, the CIPF said that is there to help users if they experience rare, unexpected losses.
This fund will cover things like security breaches or other tough situations, and it starts with an initial amount of 50 crore rupees, which is about $595,800.
A Step Forward: CoinDCX’s Fund for Enhanced User Security
CoinDCX is going to put 2% of its brokerage income into the CIPF each year. We’re also looking at ways to increase the fund size over time.
Gupta said in the press release that the CIPF will give users extra protection in case of an “extremely rare” incident 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.”
Government and Exchanges React to $235M WazirX Hack
The $230 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 of the Indian crypto exchange KoinBX, talked about how big the hack was and what the Indian government is doing to protect investors. He said that the government is putting investors first.
Tiwari thinks that Indian digital asset exchanges will probably invest in security infrastructure to help protect the Indian digital asset market and community.
Conclusion
CoinDCX’s CIPF represents a significant step towards greater investor protection in India, especially following the recent WazirX hack.
By keeping up its efforts to make things more secure and planning a review of the fund, CoinDCX shows it’s serious about protecting users and boosting confidence in the cryptocurrency market.
