CoinDCX Hatches a Million Dollar Plan to Reap Advantages of India’s Crackdown on Foreign Exchanges

As part of its ongoing efforts, India has ordered multiple foreign exchanges to show the status of their compliance with India’s Web3 sector laws.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 9 January 2024 16:58 IST

CoinDCX Hatches a Million Dollar Plan to Reap Advantages of India’s Crackdown on Foreign Exchanges

Photo Credit: Pixabay/ Shaurya Singh

India is deploying crypto laws gradually to make the industry safer to engage with

Highlights

CoinDCX is looking to bulk up investments on its platforms
CoinDCX claims to have seen a spike of 2000 percent in recent investments
India is probing compliance status of foreign crypto firms

Indian crypto exchanges are reaping the benefits of the government opening compliance investigations on foreign crypto exchanges like Binance and Kraken. Over the last week, Indian crypto exchanges recorded a massive inflow of deposits, that has now opened a competition amongst Indian exchanges. CoinDCX, that claims to have seen a 2,000 percent hike in crypto desposits in the last few days, has hatched a plan to lure-in more investors to transfer their crypto investments from foreign exchanges onto its platform.

In a legit million-dollar plan, CoinDCX has decided to offer one percent bonus to all investors who make deposits on the exchange between January 9 and January 18, 2024. In an announcement shared on Tuesday, the exchange said it has earmarked a fund pool of $1 million (roughly Rs. 7 crore) to reward investors looking to migrate their crypto from non-compliant offshore exchanges to those that are registered with India's Financial Intelligence Unit (FIU).

India is accelerating efforts to deploy legal requirements to regulate the crypto sector. After levying taxes on crypto incomes last year, India has brought the digital assets service providers into the ambit of the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PML) Act in March 2023 as well.

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As part of its ongoing efforts, India has ordered multiple foreign exchanges to show the status of their compliance with India's Web3 sector laws. The nine offshore Virtual Digital Assets Service Providers are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex.

“As part of compliance action against the offshore entities, Financial Intelligence Unit India (FIU IND) has issued compliance Show Cause Notices to the following nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA)," the Ministry of Finance had disclosed in an official announcement last week.

CoinDCX, as part of its plan, will present one percent worth of Tether tokens on the total amount of deposit to the users.

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“Example: If a user deposited 10 USDT worth of BTC on January 8 and 20 USDT worth of CELO on 17th Jan, you will receive 30*1 percent = 3 USDT worth of INR on the Payout Date, i.e., Feb 16, 2024- Maximum bonus is capped at Rs. 10,000 per user,” the official statement noted.

The exchange has also confirmed that its operations are registered with India's FIU and have further vouched to comply with India's crypto rules.

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Further reading: Cryptocurrency, CoinDCX, Crypto India, Crypto Laws

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More