CoinDCX, a popular Indian cryptocurrency exchange, has launched a $6 million (Rs 5 billion) investor protection fund after its rival WazirX was recently hacked for $230 million.
This fund Cryptocurrency Investor Protection Fund (CIPF)It is designed to compensate users for losses that occur in rare circumstances, such as a security breach or other adverse event.
CoinDCX will contribute 2% of its brokerage revenues annually to the CIPF Fund, with plans to increase the size of the fund over time. The initiative aims to strengthen trust and security in the Indian cryptocurrency ecosystem.
CoinDCX announced its launch on X. “We are here to set a new standard in the Indian crypto ecosystem and foster long-term trust and security.”
“Introducing the Cryptocurrency Investor Protection Fund (CIPF). With an initial allocation of INR 50 Crore, we have pledged to add 2% of our brokerage income to the capital and increase the pool size over time to compensate users for losses incurred in extremely rare circumstances such as a security breach or other adverse events.”
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