CoinDCX Launches India’s First Crypto Investor Protection Fund Worth Rs 50 Crore

CoinDCX has launched a Rs 50 crore Crypto Investor Protection Fund, becoming the first Indian crypto exchange to safeguard users’ assets against security breaches and adverse events.

Key Points

• CoinDCX launches India’s first Crypto Investor Protection Fund (CIPF) worth Rs 50 crore.
• The fund aims to safeguard users’ assets in case of security breaches or adverse events.
• CoinDCX will add 2% of its total brokerage income to the CIPF to ensure it grows over time.
• The initiative follows a significant hack at WazirX that resulted in substantial user losses.
• The CIPF aims to build long-term trust in the Indian crypto ecosystem.

In a landmark move for the Indian cryptocurrency market, CoinDCX announced the launch of a Crypto Investor Protection Fund (CIPF) worth Rs 50 crore on Wednesday, August 7. This initiative makes CoinDCX the first Indian crypto exchange to establish a dedicated fund aimed at safeguarding users in financially vulnerable situations, particularly in the wake of security breaches.

The decision comes in response to the recent WazirX hack, which saw over $230 million (approximately Rs 1,900 crore) drained from one of its wallets, leaving many users to bear significant losses. By launching the CIPF, CoinDCX aims to prevent such scenarios from adversely affecting its customers.

Sumit Gupta, co-founder of CoinDCX, emphasized the importance of this fund. “This dedicated fund will provide an additional layer of protection, ensuring that our customers’ assets remain secure and intact in an extremely rare event of a security breach or an adverse event,” Gupta said.

Initially, the CIPF is set at Rs 50 crore, but Gupta assured that this amount will grow over time. The company plans to infuse two percent of its total brokerage income into the corpus, allowing the fund to increase gradually. “We will continue to monitor the fund’s size, maintaining the balance at a level adequate to safeguard our users’ assets. The CIPF will be one of its kind and a significant step towards building long-term trust in the Indian crypto ecosystem,” Gupta added.

This proactive measure by CoinDCX not only highlights its commitment to user security but also sets a new standard for crypto exchanges in India. By ensuring that users have a safety net in place, CoinDCX is fostering a more secure and trustworthy environment for crypto investors in the country.