What does BitGo’s partnership with the largest crypto exchange in India CoinDCX mean?
BitGo, a company that manages the security of digital assets, enters into cooperation with the Indian crypto exchange CoinDCX.
BitGo is a California-based digital asset security company with many years of experience. Their main service is a Bitcoin wallet secured with multiple keys. This means that BitGo wallets have 3 private keys, one of which is stored by the company and the other two by the wallet user.
The company provides its CoinDCX services by storing and partially ensuring assets traded on India’s largest crypto exchange. The company already provides its services to other crypto exchanges, including Bitstamp, and in March this year, it launched a crypto loan service at the institutional level.
📢Big News for CoinDCX users@BitGo is now the custodian of CoinDCX.— CoinDCX: India's Largest Cryptocurrency Exchange (@coindcx) May 14, 2020
CoinDCX users' funds are completely safe and protected by BitGo’s USD 100 million insurance policy.
Read more here: https://t.co/xi43KEh8Ed#TryCrypto pic.twitter.com/UZbG6iQkQR
As BitGo emphasizes, they handle more than 20% of all Bitcoin transactions and provide an insurance policy of assets for $100 million, and thanks to Woodruff-Sawyer & Co., they enable clients to take out excess insurance over the basic ones.
CoinDCX has already started transferring its assets to BitGo portfolios last week. With the California-based company, all CoinDCX cryptos will be supervised and secured with two-component authentication.
Is this a good time?
In the first quarter of this year, the Supreme Court of India repealed the ban on banks’ services to crypto companies, informing that they will introduce a more positive climate for the domestic industry, seeing the potential lying in crypto.
The cooperation undertaken by BitGo and CoinDCX attracts new investors. Sumit Gupta CEO of CoinDCX, confirmed that they have already secured investments of Polychain Capital, Bain Capital Ventures and BitMEX or HDR Global Trading.
The recent Facebook collaboration with Jio for nearly $6 billion highlights India’s intense growth as a potential centre for crypto project launches.
Following the Supreme Court’s lifting of the ban in India, many cryptocurrency platforms have seen significant growths, as has one of the most popular cryptocurrency exchange WazirX, which saw an 80% increase in months in March and April.
Despite the cancelling of the ban, some banks continue to refuse to provide their services, underlining the continued reluctance of banks to cryptocurrencies. The Supreme Court ruling in India on the regulation of the crypto sector remains unclear and due to this limited knowledge of new technologies, many companies hesitate to make radical decisions. For this reason, several Indian stock exchanges have written a letter to the central bank for a better explanation of the applicable rules.
Leaving aside the question of whether the current moment is appropriate for cooperation, India is developing rapidly in terms of cryptocurrency and such large cooperation as Facebook with Jio or BitGo with CoinDCX emphasize the value that companies see in the Indian market. Surely the rules will become clearer and the crypto market and blockchain technology will flourish.