The Indian Enforcement Bureau has enlisted COINDCX to provide custodian services for seized cryptocurrencies.
The Enforcement Bureau, India’s Law Enforcement and Economic Intelligence Agency, has chosen the Cryptocurrency Exchange CoindCX to manage the cryptocurrency seized during an ongoing investigation.
In a March 5 press release shared with Crypto.News, CoindCX confirmed it will manage the management of forfeiture assets following its collaboration with the Enforcement Bureau and its role in supporting the seizure process for ED investigations involving Crypto.
CoindCX co-founder Sumit Gupta said the exchange has established a specialized team with advanced security protocols, including multi-signature and multi-party calculation wallets, to manage custody.
The partnership comes as CoindCX set up an Investor Protection Fund in the wake of a $230 million hack for Crypto Exchange Wazirx. The Investor Protection Fund is designed to compensate users for losses that occur in “very rare scenarios such as security breaches,” and at the time of its inception it holds nearly $6 million from the exchange’s profits.
In late February, Crypto.News reported that India’s Crypto trading volume increased to $1.9 billion in the fourth quarter of 2024, more than doubled from the previous quarter. Retailers drive most of their activities. Of the top 10 cities leading crypto adoption in 2024, seven are small cities like Jaipur, Lucknow and Pune, with people turning to crypto for extra income.
Despite high taxes and regulatory uncertainty, India’s crypto market is projected to exceed $15 billion by 2035, says Kush Wadwa, partner at consulting firm Grant Thornton Bharat.
