Standing Tall: Ensuring High Standard of Security & Strong Risk Management at CoinDCX

Our Mission to Safeguard Your Funds: Key Updates from Co-Founder Sumit Gupta, CoinDCX

I genuinely cherish our town hall meetings, especially now that they’ve returned to in-person gatherings. There’s something deeply fulfilling about connecting face-to-face with so many colleagues. Although our offices span various locations—Bengaluru, Mumbai, Delhi, and now Dubai with the acquisition of BitOasis—it’s always worth the effort to travel for these important events. This time, I attended from Bengaluru.

As we gathered for our quarterly town hall last week, I felt a renewed sense of purpose while sharing our priorities and achievements – our focus was on the security of our users’ funds. At CoinDCX, we’ve always prided ourselves on leading the way in protecting and strengthening the crypto/Web3 ecosystem. We embrace this responsibility wholeheartedly, consistently pushing the envelope on what it means to be a leader in this space. From ensuring compliance with FIU-IND regulations to integrating tax solutions that simplify life for our users, we are dedicated to upholding the highest standards of security and compliance.

I also wanted to highlight just how deeply committed we are to this mission. I was thrilled to announce the launch of our new decentralized custody feature on CoinDCX web3 wallet, empowering our users with greater control and flexibility over their crypto assets. With this feature, you can move your assets from CoinDCX centralized custody to decentralized custody on the blockchain. This means on-chain ownership of your crypto—when you transfer your assets, you retain full control, ensuring that only you can access and manage them. Your holdings will be visible on the blockchain, enhancing transparency and giving you even more confidence regarding the safety of your investments. Stay tuned for more details!

The Indian crypto market is maturing and expanding with each passing year. Despite being less than a decade old, the enthusiasm for this promising asset class is exceptionally high among Indian investors. India already boasts over 3 crore investors, placing it among the top global markets for two consecutive years. 

As I reflect on this growth, I can’t help but think about a pressing need that’s become increasingly clear: an Indianised crypto custody solution. As the Indian crypto market continues to mature, we must evolve alongside it. If we look at the capital market landscape, it’s evident why SEBI emphasizes stringent regulations for custodians including the need for localisation. They’ve established a strong governance framework to ensure the safety and integrity of capital market assets, and we believe that similar measures are essential in the rapidly evolving crypto space. Now is the time for us to take action and create a robust localized framework that addresses the specific needs of our community! 

This is a challenge that we have on the industry level and must be addressed. Keep checking our blog for updates on this important initiative!

I’m excited to share some news around the topic you’ve been eagerly asking about: CoinDCX will soon introduce an opt-in feature for enabling crypto withdrawals in a phased manner!

As India’s largest crypto exchange, we strictly comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines set by the Financial Intelligence Unit (FIU). We take pride in this compliance to protect our customers and the ecosystem. Unrestricted crypto withdrawals have previously exposed exchanges to malicious activities that can jeopardize our bank accounts that hold customer funds. For instance, bad actors could deposit INR and withdraw crypto for illicit purposes, potentially leading to the freezing of our bank accounts by legal authorities where we hold user INR funds. That’s why we’ve taken a conservative approach to withdrawals, prioritizing the safety of user INR funds, and we’re proud of our success in doing so.

We understand that this approach, though in the best interest of our users, has led to some inconvenience. We are working on something exciting to solve this for our users. Stay tuned for this exciting announcement—it’s coming soon!

I shared some exciting news that energized our team and filled them with pride. We’ve received a new privacy certification, IMS – ISO/IEC 27701:2019, making us the only Indian crypto exchange to attain this standard. Along with our earlier ISO certification, ISO/IEC 27001:2022, this ensures that our users’ data is handled with the utmost confidentiality. As a company focused on privacy, we handle the data of crores of customers with care. These new ISO certifications highlight our commitment to safeguarding our users’ funds and personal data.

I can’t express enough how proud I am of our team. We have been standing tall when it comes to safeguarding our customers’ peace of mind. It fuels everything we do. We recognize that this is not just a responsibility; it’s a privilege. Yet, as a collective, we understand that we cannot rest on our laurels. We must continuously strive to raise the bar.

Here’s a picture of Neeraj and me speaking during the townhall. Big thanks to the team for capturing the moment!