India’s Enforcement Directorate has enlisted CoinDCX to provide custodian services for seized cryptocurrency.
Enforcement Directorate, India‘s law enforcement and economic intelligence agency, has selected cryptocurrency exchange CoinDCX to manage cryptocurrencies seized during ongoing investigations.
In a March 5 press release shared with crypto.news, CoinDCX confirmed it will manage the custody of confiscated assets, following its cooperation with the Enforcement Directorate and its role in supporting the seizure process for ED investigations involving crypto.
CoinDCX co-founder Sumit Gupta said the exchange has set up a specialized team equipped with advanced security protocols, including multi-signature and multi-party computation wallets, for managing custody.
The partnership comes as CoinDCX established an investor protection fund in the wake of the $230 million hack on crypto exchange WazirX. The investor protection fund is designed to compensate users for losses incurred in “extremely rare scenarios such as security breaches” and at the start held nearly $6 million from the exchange’s profits.
In late February, crypto.news reported that crypto trading volumes in India jumped to $1.9 billion in Q4 2024, more than doubling from the previous quarter, as smaller-city investors sought new income sources amid weak job growth and wages. Retail traders are driving most of the activity. Out of the top 10 cities leading crypto adoption in 2024, seven were smaller cities like Jaipur, Lucknow, and Pune, where people are turning to crypto for extra income.
Despite high taxes and regulatory uncertainty, India’s crypto market is projected to grow beyond $15 billion by 2035, says Kush Wadhwa, partner at consulting firm Grant Thornton Bharat.
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