Indian exchange CoinDCX establishes a million-dollar investor protection fund; Finance Minister: No regulatory plans yet

In response to the hacking incident at the Indian exchange WazirX, the exchange CoinDCX launched the Crypto Investor Protection Fund (CIPF) worth nearly $6 million to ensure asset security, allocating 2% of the broker's income annually. However, the country's Finance Minister has stated that there are currently no regulatory plans in place.

CoinDCX Launches $6 Million Investor Protection Fund

CoinDCX announced the establishment of a cryptocurrency investor protection fund to compensate users in the event of rare security vulnerabilities or other cybersecurity incidents.

The announcement stated that the creation of the Crypto Investor Protection Fund (CIPF) is essential to set new standards for the Indian crypto ecosystem and promote long-term trust and security among investors:

Our initial funding allocation is 500 crore Indian Rupees, approximately $5.96 million, with a commitment to inject 2% of broker revenue annually, increasing the fund size over time.

CoinDCX CEO Sumit Gupta commented on this saying:

This is equivalent to 1.8% of our total user funds, and our idea is to set an example at least in India and position CoinDCX as an industry benchmark.

WazirX Hacked, CoinDCX Expands Quickly

A few weeks ago, the Indian cryptocurrency exchange WazirX was hacked, resulting in losses of up to $235 million, drawing significant attention.

Sumit Gupta criticized the incident, stating that the losses should primarily be borne by WazirX using its own treasury and assets, rather than passing on 45% of the losses to customers.

Millions of users to share the burden? WazirX exchange hacked aftermath: users left with only "cruel two choices"

During the same month, the company also acquired the cryptocurrency exchange BitOasis in the MENA region, aiming to penetrate the Middle East and North Africa markets and expand its business.

Indian Finance Minister: No Immediate Cryptocurrency Regulation Plans

However, in response to inquiries from Indian parliamentarian Harish Balayogi regarding the government's stance, research, imminent actions, or legislative plans concerning the cryptocurrency industry.

Indian Finance Minister Pankaj Chaudhary stated in a written response on August 5th that there are currently no plans to regulate the cryptocurrency industry:

There is currently no proposal for regulating virtual asset trading. The Financial Intelligence Unit (FIU) has been authorized to regulate and report entities providing virtual asset services (VASPs).

He added, "Crypto companies must comply with the 2002 Prevention of Money Laundering Act (PMLA) to facilitate monitoring of activities including money laundering and terrorist financing."

Chaudhary emphasized that despite the absence of a clear regulatory framework, enforcement agencies such as the FIU, the Reserve Bank of India, and the Directorate General of Goods and Services Tax Intelligence (DGGI) are empowered to investigate and combat illegal activities.

Reportedly, the DGGI recently issued a warning to Binance, demanding payment of $86 million in unpaid taxes.

India issues high tax notice to Binance! First international exchange to face penalties