India’s Bharat Web3 Association (BWA) is doubling its efforts to enhance cybersecurity and consumer protection in the crypto sector after the $230 million WazirX hack.
According to local media, Dilip Chenoy, the chairman of the BWA, has established two new internal groups designed to investigate the most recent security breach and resolve these issues.
Task forces for consumer protection
A group of chief information security officers from member firms will concentrate on cybersecurity. This team will establish standard operating procedures and execute solutions to mitigate potential security vulnerabilities.
Nevertheless, the second group will focus on consumer protection concerns, ensuring that guidelines are current and user interests are protected.
The BWA is closely monitoring the situation and preserving regular communication with the affected parties — WazirX and Liminal — to ensure a complete examination of the incident, as Chenoy stated. A thorough investigation into the breach is underway.
He stated that the BWA had requested a comprehensive forensic analysis, root cause evaluation from both corporations and an assessment of potential legal and remedial actions in response to the incident.
According to Chenoy, the BWA recommended that the forensic report undergo a third-party evaluation to guarantee a fair assessment.
This method would ensure that all aspects of the incident were exhaustively investigated and provide an objective analysis of the breach.
BWA broadens its scope to include cybersecurity
The executive observed that the BWA has historically prioritized regulatory compliance issues, such as registering the Financial Intelligence Unit and implementing Anti-Money Laundering measures. Nonetheless, the most recent incident has underscored the necessity of dedicating more attention to cybersecurity.
The association’s newly established groups, including major companies such as Polygon, CoinSwitch, Liminal, Biconomy, Tax Nodes, Giottus, and Hike, will now include WazirX’s local rival, CoinDCX. These teams will address cybersecurity challenges and assess and update consumer protection guidelines.
The second-largest breach of a centralized exchange in recent history, the hack at WazirX, one of India’s largest cryptocurrency exchanges, resulted in a significant loss of approximately $235 million.
The BWA is taking immediate action in response to the breach, which has the potential to have significant implications for India’s cryptocurrency sector, which has thrived despite government pressure. The hack affected 45% of user funds.
The exchange disclosed a plan on July 27 to mitigate user disruption and preserve the platform’s stability.
