CoinDCX, a prominent cryptocurrency exchange in India, has unveiled a decentralized custody feature aimed at enhancing the security of its 15 million users’ crypto assets. This initiative addresses growing security concerns in the industry, particularly following the recent WazirX hack that resulted in a staggering loss of over $230 million.
With this new feature, users can transfer their funds from CoinDCX’s centralized storage to their own decentralized wallets, providing them with greater control over their assets and mitigating the risks associated with traditional wallet systems.
In contrast to conventional self-custody wallets, which often require complex seed phrases for access, CoinDCX streamlines the process with user-friendly security measures such as two-factor authentication (2FA) and multi-party computation (MPC).
Sumit Gupta, co-founder of CoinDCX, explained, “Traditional self-custody wallets can be cumbersome due to the need to manage seed phrases and private keys. Our Web3 Mode removes these complexities, replacing them with more accessible security options like 2FA and MPC for a safer user experience.”
The new custody feature also allows users to transfer their assets back to the CoinDCX exchange for trading at their convenience. In addition, CoinDCX ensures compliance with Indian regulations to bolster user confidence in the platform.
To further safeguard its clientele, CoinDCX has established a Crypto Investors Protection Fund (CIPF) designed to assist users in the event of security-related losses. This makes CoinDCX the first exchange in India to offer such a comprehensive custody service, setting a new standard for security in the cryptocurrency space.
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