CoinDCX, an Indian cryptocurrency exchange, has launched a decentralized custody feature that allows its 15 million users to manage their crypto assets directly on the blockchain.
This move comes in response to increasing security concerns in the crypto space, particularly after the recent WazirX hack incident, which resulted in the loss of over $230 million.
Now, users can transfer their funds from CoinDCX’s centralized storage to their own decentralized wallets. This gives users more control over their assets and reduces the risks linked to traditional wallet systems.
Unlike other self-custody wallets that need complex seed phrases, CoinDCX simplifies the process with easy security options like two-factor authentication (2FA) and multi-party computation (MPC).
According to Sumit Gupta, co-founder of CoinDCX, “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.”
In addition, users can easily send their assets back to the CoinDCX exchange for trading whenever they want. The exchange also ensures that it follows Indian regulations to help users feel safe.
To further protect its users, CoinDCX has set up a Crypto Investors Protection Fund (CIPF) to help users if they lose funds due to security issues. This new custody feature makes CoinDCX the first exchange in India to offer such a service.
Also Read: WazirX CoC Backfires: Only 4 out of 10 Members Present in 1st Meeting
