CoinDCX, one of the most prominent crypto currency exchanges in India has launched the Crypto Investors Protection Fund - CIPF with the goal of raising the level of security in the Indian cryptocurrency market. 

CoinDCX will contribute 2% of its financier pay to the CIPF yearly, with plans to survey and possibly increment the asset size over the long run. Gupta stated in the press release that the CIPF will offer users additional security in the event of an “extremely rare event” involving a “security breach or adverse event.” 

Expressing to this, Sumit Gupta, Co-Founder of CoinDCX stated that the company has executed a “comprehensive, multi-layered security strategy.” 

The Indian cryptocurrency exchange WazirX was hacked on July 18 for $235 million, which raised significant concerns about the future of crypto and exchange security in India.

“"In an extremely rare event of a security breach or an adverse event, this dedicated fund will provide an additional layer of protection, ensuring that our customers' assets remain secure and intact. We commit to adding 2% of brokerage income to the corpus and increasing the pool size over time. 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. We implement industry-leading security measures, including multiparty computation (MPC), two-factor authentication (2FA), and advanced encryption to safeguard user data and assets.” Gupta stated. 

“We will continue to monitor the fund’s size, maintaining the balance at a level adequate to safeguard our users’ assets”, he added.