Crypto Quill

In response to the recent $230 million hack of WazirX, the Bharat Web3 Association (BWA) has announced the creation of two new internal groups focused on cybersecurity and consumer protection. This move aims to address the vulnerabilities exposed by the hack and to restore confidence in the crypto industry. The hack, attributed to the North Korean Lazarus Group, has prompted BWA to take decisive action to prevent future breaches and to enhance consumer trust.

Strengthening Cybersecurity Measures

The BWA’s newly formed cybersecurity group will consist of chief information security officers (CISOs) from member firms. Their primary goal is to develop robust standard operating procedures (SOPs) to prevent future breaches. This initiative marks a significant shift from BWA’s previous focus on financial regulations and anti-money laundering. The group will also conduct comprehensive forensic analyses and recommend third-party evaluations to ensure transparency and thoroughness.

WazirX, one of the affected companies, has paused crypto asset trading and withdrawals as it navigates this crisis. The exchange has proposed a recovery plan that includes allowing customers to access 55% of their assets while converting the remaining 45% to USDT and locking them. This plan has faced criticism from users and industry peers alike, highlighting the need for improved cybersecurity measures.

The involvement of the FBI in investigating the attack underscores the global threat posed by state-sponsored cyberattacks in the crypto space. As the BWA’s new groups begin their work, the industry watches closely, hoping these measures will fortify defenses and restore confidence in the sector.

Enhancing Consumer Protection

In addition to cybersecurity, the BWA is also focusing on consumer protection. The newly established consumer group will review and update existing consumer code guidelines to address the issues highlighted by the WazirX hack. This group will include representatives from all BWA members, such as WazirX, Coinbase, Polygon, and others. Their mission is to develop comprehensive consumer protection protocols that can be implemented across the industry.

The consumer group will also work closely with government agencies and cyber experts to strengthen the industry’s defenses against future threats. This collaborative approach aims to create a safer environment for consumers and to rebuild trust in the crypto industry. The BWA has emphasized the importance of transparency and accountability in its efforts to enhance consumer protection.

The WazirX hack has served as a wake-up call for the crypto industry, highlighting the need for stronger consumer protection measures. By addressing these issues head-on, the BWA hopes to prevent similar incidents in the future and to ensure that consumers feel secure when using crypto platforms.

Industry-Wide Collaboration

The BWA’s response to the WazirX hack has involved extensive collaboration with various stakeholders, including member firms, government agencies, and cyber experts. This collaborative effort aims to create a unified front against cyber threats and to develop industry-wide standards for cybersecurity and consumer protection.

The BWA has been in constant communication with WazirX and Liminal, the companies directly affected by the hack. Both companies have been instructed to conduct comprehensive forensic analyses and to explore legal remedies. The BWA has also recommended third-party evaluations of these reports to ensure transparency and thoroughness.

The formation of the new internal groups marks a significant step forward for the BWA and the crypto industry as a whole. By working together, the industry hopes to create a safer and more secure environment for all stakeholders. The BWA’s proactive approach to addressing cybersecurity and consumer protection issues sets a positive example for other industry bodies to follow.