CoinDCX introduces the Crypto Investors Protection Fund to enhance security for Indian crypto users by allocating 2% of its brokerage income annually to safeguard assets.
In a significant move to bolster user security in the Indian crypto market, CoinDCX, one of India's premier cryptocurrency exchanges, has unveiled the Crypto Investors Protection Fund (CIPF). This fund is designed to provide compensation for users in rare scenarios involving security breaches or other adverse events, with an initial allocation of 50 crore rupees (approximately $595,800).
Key Points:
Introduction of CIPF:
CoinDCX has established the Crypto Investors Protection Fund to enhance user security.
The fund aims to compensate users for losses in extremely rare cases of security breaches or adverse events.
Initial Allocation and Annual Contributions:
The CIPF will start with an initial allocation of 50 crore rupees, around $595,800.
CoinDCX will contribute 2% of its brokerage income annually to the fund, with plans for potential future increases.
Comprehensive Security Measures:
CoinDCX employs industry-leading security strategies, including multiparty computation (MPC), two-factor authentication (2FA), and advanced encryption.
The comprehensive, multi-layered approach is designed to safeguard user data and assets.
Acquisition of BitOasis:
On July 3, CoinDCX acquired BitOasis, a virtual asset trading platform in the Middle East and North Africa (MENA) region.
This acquisition marks CoinDCX’s expansion into the MENA market and aims to improve the user experience and broaden product offerings.
Context of Security Concerns:
The recent $235 million hack of the Indian crypto exchange WazirX has heightened security concerns.
Indian crypto exchanges are expected to invest more in security infrastructure to protect the digital asset market and community.
CoinDCX's introduction of the Crypto Investors Protection Fund marks a proactive step towards enhancing security and trust in the Indian cryptocurrency market. By allocating a portion of its brokerage income annually and implementing advanced security measures, CoinDCX aims to provide an additional layer of protection for its users. This move, coupled with its recent expansion into the MENA region through the acquisition of BitOasis, underscores CoinDCX’s commitment to user security and market growth.
Source: Cointelegraph
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