India’s CoinDCX launches investor protection fund

On August 7, CoinDCX, a leading cryptocurrency exchange in India, announced the creation of the Crypto Investors Protection Fund (CIPF) on its official account on X.

"We're here to set new standards in the Indian crypto ecosystem, fostering long-term trust and security," stated the company. The fund, initially allocated INR 50 crore ($5.96 million), will see 2% of brokerage income added to its corpus regularly, aimed at compensating users for losses incurred in extremely rare scenarios such as security breaches or other adverse events.

This decision follows the $230 million hack on the crypto exchange WazirX last month, where nearly half of its total reserves were lost. In response, WazirX has announced plans to rebalance customer portfolios by returning 55% of their holdings and locking the remaining 45% in USDT-equivalent tokens.

Established in 2018 and headquartered in Mumbai, CoinDCX has emerged as a key player in India's crypto and Web3 ecosystem, serving over 14 million registered users. The exchange is dedicated to democratizing access to virtual digital assets and enhancing financial inclusion through its innovative services.