Indian cryptocurrency exchange CoinDCX has launched a new decentralized custody feature, enabling its 15 million users to manage their crypto assets directly on the blockchain. This initiative addresses growing security concerns in the cryptocurrency landscape, particularly in light of the recent WazirX hack that resulted in losses exceeding $230 million.
With this new feature, users can transfer their funds from CoinDCX’s centralized storage to their own decentralized wallets, granting them greater control over their assets and minimizing risks associated with conventional wallet systems.
Unlike typical self-custody wallets that require users to navigate complex seed phrases, CoinDCX has streamlined the process by implementing user-friendly security measures, including two-factor authentication (2FA) and multi-party computation (MPC).
Sumit Gupta, co-founder of CoinDCX, stated, “Traditional self-custody wallets can be tricky, with seed phrases and private keys to manage. With our Web3 Mode, we eliminate these headaches, replacing them with two-factor authentication (2FA) and multi-party computation (MPC) for a more secure, accessible experience.”
Furthermore, users have the flexibility to transfer their assets back to the CoinDCX exchange for trading at their convenience. The exchange also emphasizes compliance with Indian regulations to enhance user confidence in the platform.
In a bid to bolster user security, CoinDCX has established a Crypto Investors Protection Fund (CIPF) aimed at assisting users who may lose funds due to security breaches. This development positions CoinDCX as the first exchange in India to offer such a custody service, underscoring its commitment to safeguarding user assets.
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