New Fund to Enhance Security for Indian Crypto Investors
CoinDCX, one of India’s top cryptocurrency exchanges, has announced the launch of the Crypto Investors Protection Fund (CIPF). This initiative aims to elevate security standards in the Indian crypto market by providing an additional layer of protection for users. The CIPF is designed to compensate users for losses in rare cases of security breaches or other adverse events.
Key Features of the CIPF
The CIPF will initially be funded with 50 crore rupees, approximately $595,800. CoinDCX plans to allocate 2% of its annual brokerage income to the fund, with the possibility of increasing the fund size in the future. This proactive measure aims to reassure users by ensuring that their assets are protected even in unlikely scenarios.
Sumit Gupta, co-founder of CoinDCX, emphasized the company’s commitment to security, stating, “We implement industry-leading security measures, including multiparty computation (MPC), two-factor authentication (2FA), and advanced encryption to safeguard user data and assets.” This comprehensive, multi-layered security strategy is designed to prevent unauthorized access and protect user information.
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Ongoing Commitment to User Safety
CoinDCX’s introduction of the CIPF reflects its dedication to maintaining a secure trading environment. Gupta highlighted that the fund’s balance would be regularly monitored to ensure it remains sufficient to cover potential losses. He added, “We will continue to review the fund’s size to ensure it is adequate to safeguard our users’ assets.”
The launch of the CIPF marks a significant step towards bolstering user confidence in the Indian crypto market. By setting aside a portion of its income for user protection, CoinDCX aims to create a safer and more reliable platform for its customers.
