Indian cryptocurrency exchange Coinswitch has unveiled a ₹600 crore recovery programme aimed at assisting users of troubled rival WazirX. The initiative, designed to help WazirX customers recover their losses, is expected to run over two years as Coinswitch seeks to onboard these users onto its platform.
In an exclusive interaction with Business Standard, Coinswitch co-founder Ashish Singhal explained the mechanics of the programme. “The amount is in INR or crypto deposited from Coinswitch directly into a user’s account with no lock-in. They will get it into their wallet, which they can deposit back to their bank accounts, sell, or trade. Once WazirX opens crypto withdrawals, the programme will disburse based on those crypto deposits,” said Singhal.
Gradual Disbursement and User Rewards
The funds under this recovery scheme will be distributed incrementally, with Coinswitch ensuring a seamless process for affected WazirX users. Eligible participants can receive up to 10% of the funds deposited on the platform as an upfront sign-up reward over two years. Additional incentives include up to 5% of deposited funds for users who refer other impacted WazirX customers to Coinswitch.
Coinswitch plans to evaluate the eligibility of users by reviewing their balance statements and assessing losses incurred. This targeted approach aims to maximize the support provided to those affected by WazirX’s challenges.
Funding and Crypto Market Context
The programme is being financed entirely from Coinswitch’s cash reserves, a move made possible by the company’s strong financial standing and the current bullish cryptocurrency market.
“We have about five years of runway from where we sit. The current bull run has only helped us get even more value into the ecosystem. We are funding this programme directly from our pockets,” Singhal noted.
The initiative comes as the cryptocurrency sector experiences significant growth, with Bitcoin recently hitting an all-time high of $108,319. This surge in the virtual digital asset (VDA) market has provided Coinswitch with a favourable environment to expand its user base while supporting WazirX customers in need.
Strategic Growth Amid Industry Turmoil
The recovery programme underscores Coinswitch’s strategic move to solidify its market position while addressing the broader challenges faced by the crypto industry. As Coinswitch leverages its financial stability and proactive measures, the initiative is poised to enhance its reputation as a customer-focused exchange in the competitive Indian crypto landscape.
With its ₹600 crore recovery programme, Coinswitch is not only aiding WazirX users but also positioning itself as a leading player in the rapidly evolving world of digital assets.
