Ahead of its planned relaunch, WazirX, one of India’s top cryptocurrency exchanges, has named Zodia Custody as its official custodian in a major step to rebuild trust among its stakeholders and users. This collaboration follows a severe incident that caused the exchange to cease operations for several months after losing assets worth about $234.9 million.
A New Era of Compliance and Security
“As WazirX prepares to regain its momentum, the need for trusted partners who share our commitment to an agile and secure asset management system becomes urgent,” said Nischal Shetty, co-founder of WazirX, underscoring the significance of this collaboration. In order to restore confidence in the cryptocurrency community, the partnership with Zodia Custody intends to improve asset security and guarantee regulatory compliance.
Financial behemoths including Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank (NAB), and Emirates NBD support Zodia Custody, an institutional-grade digital asset platform. The company is known for its strong security protocols and compliance-first strategy, which makes it an appropriate partner for WazirX as it works through the challenges of relaunching following a significant security breach.
A breakdown of the cyberattack
WazirX’s choice to collaborate with Zodia Custody comes after a turbulent time. The exchange experienced a serious hack in November 2024 that jeopardised Liminal Custody, its former custodian. This hack sparked intense criticism from users who believed their money was not sufficiently protected and raised significant questions about asset management procedures.
WazirX has pledged to remove all assets from Liminal Custody and has taken action to move its operations to Singapore since the incident. The management of the exchange has been putting a lot of effort into creating a recovery plan that puts user reimbursement first while making sure that operations are safe and adhere to legal requirements going forward.
The Way Ahead: Regulatory Compliance and User Trust
WazirX’s user base is watching it closely as it gets ready for a relaunch. A lot of consumers are still dubious about whether the exchange will put refunds ahead of its own operational recovery. Users can vote on whether to move forward with a relaunch or wait for liquidation options, which could take years, as part of the recovery plan the exchange has offered.
Shetty has hope for the future in spite of these obstacles. “We want to ensure we partner with the very best of the industry’s custody solutions to build trust and confidence,” he said again.
Implications on the Market for Cryptocurrencies
The collaboration with Zodia Custody represents a larger movement in the bitcoin business towards more stringent security protocols and adherence to regulations. As users and authorities put more and more pressure on exchanges, implementing strong custodial solutions will be essential to preserving operational integrity.
Zodia Custody’s reputation as a trustworthy custodian is further cemented by its accreditation with SOC 1 Type I and SOC 1 Type II certifications. These certifications guarantee asset protection and the efficacy of financial reporting while strictly separating client assets to avoid co-mingling.
Conclusion: WazirX Enters a New Phase
WazirX’s choice to work with Zodia Custody is a significant step in the company’s recovery and relaunch process. WazirX wants to reassure users that their funds will be handled securely going forward by placing a high priority on security and compliance.
Exchanges such as WazirX must adjust to fulfil customer expectations and regulatory requirements as the cryptocurrency market continues to shift. WazirX is well-positioned to come out of this difficult time stronger than before because to the solid support of respectable financial institutions and a dedication to openness.
As WazirX manages its relaunch and responds to user concerns around asset security and operational integrity, the next few months will be critical. The exchange’s long-term success in the cutthroat cryptocurrency market will depend on its capacity to regain trust as it goes forward.
