In response to the recent hack of local crypto exchange WazirX, India’s Bharat Web3 Association (BWA) is ramping up efforts to enhance cybersecurity and strengthen consumer protection in the cryptocurrency sector.
Local media reports that the BWA has established two new internal task forces to address these critical issues and investigate the recent security breach.
The first task force, composed of chief information security officers from member firms, will focus on bolstering cybersecurity. Their responsibilities include developing standard operating procedures and implementing solutions to prevent future incidents.
The second group will concentrate on consumer protection, ensuring that guidelines remain current and user interests are protected.
Dilip Chenoy, the group’s chairman, confirmed that a comprehensive investigation into the breach is underway. He noted the BWA is actively monitoring the situation and is in regular contact with the affected parties—WazirX and Liminal—to facilitate a thorough review of the incident.
The association, which includes major industry players, including Coinbase, Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, Hike, and, recently, CoinDCX, is traditionally focused on regulatory compliance. However, the recent exploit incidents in the sector have reportedly prompted its shift to increased emphasis on cybersecurity.
The association noted that the newly formed teams will work to update existing consumer protection guidelines and address current cybersecurity challenges.
The BWA has also requested a detailed forensic analysis, root cause evaluation from both companies and an assessment of potential legal and remedial actions. Chenoy suggested involving a third-party evaluator for the forensic report to ensure an unbiased review.
The recent hack at WazirX reportedly resulted in a substantial loss of around $235 million, impacting 45% of user funds. In response, the WazirX team announced a strategy on July 27 to minimize disruption for its users and ensure platform stability. It offered its users two options to manage their remaining assets; both of which involved locking almost 45%.
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