India’s Enforcement Directorate Partners with CoinDCX for Crypto Custody
India’s Enforcement directorate has chosen coindcx to handle seized cryptocurrencies. This decision comes as part of ongoing investigations involving digital assets.
In a recent press release, CoinDCX confirmed its role in managing confiscated crypto assets. The exchange has been working closely with the Enforcement Directorate to support the seizure process.CoinDCX co-founder Sumit Gupta stated that the company has formed a specialized team with advanced security measures.These include multi-signature and multi-party computation wallets to ensure the safety of the seized assets.
This partnership follows CoinDCX’s establishment of an investor protection fund. The fund was set up after a $230 million hack on wazirx, another crypto exchange. It aims to compensate users for losses due to rare security breaches. Initially, the fund held nearly $6 million from the exchange’s profits.
Meanwhile, crypto trading volumes in India have surged. In Q4 2024, they reached $1.9 billion, more than double the previous quarter. Retail traders,especially in smaller cities like Jaipur and Lucknow,are driving this growth.People in these areas are turning to crypto as a source of additional income amid economic challenges.
Despite regulatory hurdles, India’s crypto market is expected to exceed $15 billion by 2035. Kush Wadhwa, a partner at Grant Thornton Bharat, highlighted this projection. The market’s growth shows the increasing interest in cryptocurrencies among Indian investors.
