Strengthening Cybersecurity in India’s Crypto Sector: BWA’s Proactive Measures
Formation of Specialized Task Forces
Chenoy unveiled that a thorough investigation into the breach is presently in progress. In order to ensure an exhaustive examination of the incident, the BWA is sustaining close communication with the affected parties—WazirX and Liminal. Both companies are meticulously conducting a detailed forensic analysis and root cause evaluation, while also assessing potential legal and remedial actions.
Investigation and Evaluation
Expanding Focus to Cybersecurity
Traditionally, the BWA has concentrated on regulatory compliance issues, engaging widely with the Financial Intelligence Unit and committing to the implementation of Anti-Money Laundering measures. Yet, in light of the recent incident, it’s become clear that a greater emphasis on cybersecurity is crucial. The association, which encompasses major players such as Coinbase, Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, and Hike, will now also involve WazirX’s local rival, CoinDCX. Uniting in its newly established groups, they will review and update existing consumer protection guidelines while simultaneously addressing the current cybersecurity challenges.
The unfortunate hack at WazirX resulted in a significant loss of around $235 million, affecting a substantial 45% of user funds. This incident could potentially have far-reaching implications for India’s cryptocurrency sector, a sector which has managed to thrive despite governmental pressures. Thus, it’s incited immediate action from the BWA.
On July 27, WazirX announced a strategy to minimize disruption to its users and maintain the platform’s stability, highlighting the urgent need for enhanced security measures in the crypto space.
Related: $235M WazirX exchange hack has implications for India’s crypto industry
Magazine: Crypto-Sec: Evolve Bank suffers data breach, Turbo Toad enthusiast loses $3.6K
The BWA’s proactive steps towards strengthening cybersecurity and enhancing consumer protection are pivotal in safeguarding the interests of both users and stakeholders within the crypto industry. As digital finance continues to evolve, the role of such associations becomes increasingly crucial in navigating the complexities of cybersecurity and regulatory compliance.
