CoinDCX, India’s largest cryptocurrency exchange, has introduced the Crypto Investors Protection Fund (CIPF) to compensate users for losses in rare instances such as security breaches or other adverse events. With an initial allocation of INR 50 crore, the fund is a testament to CoinDCX’s commitment to user trust and security in the crypto ecosystem.
The announcement was made by Sumit Gupta, Co-Founder of CoinDCX. The exchange is a major player in India’s crypto market, boasting over 15 million registered users and a reputation for stringent security and compliance measures.
The CIPF was recently established, marking CoinDCX’s ongoing efforts to enhance user protection and build trust within the cryptocurrency community.
The CIPF will be governed by a framework designed for effective management and transparency. CoinDCX plans to add 2% of its brokerage income to the fund, with an aim to increase the pool size over time. This initiative is part of a comprehensive security strategy that includes multi-party computation (MPC), two-factor authentication (2FA), and advanced encryption technologies. CoinDCX is ISO 27001:2022 certified and regularly conducts security audits and compliance checks to uphold high safety standards.
Founded in 2018, CoinDCX has become India’s leading crypto exchange, known for its robust security protocols and adherence to regulatory standards. The exchange’s mission is to democratize access to digital assets and provide a secure platform for Web3 experiences. The creation of the CIPF underscores CoinDCX’s dedication to user safety and trust.
Sumit Gupta highlighted the importance of security at CoinDCX, stating, “At CoinDCX, security is our top priority. We invest heavily in top-notch security practices to ensure our customers’ assets are protected at all times.” He further explained that the CIPF would offer an extra layer of protection in the rare event of a security breach, ensuring that user assets remain secure.
The introduction of the CIPF is a proactive step towards enhancing user protection and building long-term trust in the Indian crypto industry. By committing to maintain an adequate fund size and ensuring transparency, CoinDCX sets a high standard for security and reliability. This initiative could influence other crypto exchanges to adopt similar measures, strengthening the overall security framework of the crypto market in India.
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