CoinDCX Allocates $1 Million to Help Asset Transfers Amid Tightened Govt Regulations

CoinDCX, an Indian cryptocurrency exchange, announced on Tuesday that it has put aside $1 million to help investors with crypto asset transfers from overseas exchanges that do not comply with the Financial Intelligence Unit (FIU).

CoinDCX keeps $1 million for asset transfers

Indian crypto exchange CoinDCX on Tuesday said that it has kept aside nearly $1 million in funds to aid non-FIU complaint trades from overseas.

The crypto exchange will also use the funds to offer a 1% bonus on foreign exchange deposits made on their platform between January 9 and January 18.

“CoinDCX aims to stand in solidarity with the community at a time when users wish to safely migrate their crypto from non-compliant offshore exchanges to FIU-registered entities,” it said in a statement.

CoinDCX helps retrieve assets after Govt’s crackdown on illicit activities

The Financial Intelligence Unit (FIU) had previously sent a show cause notice to nine offshore cryptocurrency exchanges. The FIU sent a the stating that the exchanges were “illegally operating” and had violated India’s anti-money laundering laws.  The Ministry of Electronics and Information Technology (MeitY) has been since instructed to restrict the URLs of the nine cryptocurrency exchanges operating in India FIU. The FIU currently constitutes a part of the Indian Finance Ministry.

Nine cryptocurrency exchanges, including Bittrex, Bitfenex, MEXC Global, Gate.io, Kucoin, Bitstamp, Huobi, and Kraken were alleged by the FIU in their notice.

Fortunately, CoinDCX was not on the list. Forbes has also named the crypto exchange as a “transparent” and “the safest crypto exchange” platform in India.

CoinDCX sees surge in cryptocurrency deposits after Govt’s order

CoinDCX reported that it witnessed a 2000% increase in cryptocurrency deposits on its platform after the FIU warnings.

Additionally, the crypto exchange has now announced a sweet candy for those who join their platform. It said that investors who transfer their cryptocurrency deposits from offshore businesses to the platform will now receive a 1% bonus from the platform.

The exchange has kept a cap of Rs 10,000 on the maximum bonus per user.

Executive Vice President (Growth & Strategy) at CoinDCX Minal Thukral stated, “As a responsible player in the Indian crypto ecosystem, we understand the urgency for investors to transition their assets from non-FIU compliant offshore exchanges.”