CoinDCX sets aside $1 million to aid asset transfers from foreign exchanges

This comes after the finance ministry's FIU last month issued show cause notices to nine offshore crypto exchanges for operating in India 'illegally'

Indian crypto exchange CoinDCX on Tuesday announced that it has earmarked $1 million to facilitate crypto asset transfers for investors from non-Financial Intelligence Unit (FIU) compliant offshore exchanges. The money will be utilised to provide a 1 per cent bonus on deposits made on the platform between January 9 and 18 from foreign exchanges.

"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," the exchange said.

This comes after the finance ministry's FIU issued show cause notices to nine offshore crypto exchanges for operating in India "illegally" last month. It also asked the Ministry of Electronics and Information Technology to block URLs of these entities.

The ministry also said that these nine entities failed to comply with the provisions of the Prevention of Money Laundering Act in India.

Following the notices, CoinDCX announced that it saw a 2000 per cent surge in crypto deposits on its platform.

Now, the platform will offer a 1 per cent bonus on the crypto deposits, which investors move from offshore entities to its platform. The maximum bonus has been capped at Rs 10,000 per user.  

"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," said Minal Thukral, executive vice president (Growth & Strategy) at CoinDCX.

"Our long-term vision is to see an Indian crypto landscape that is secure, compliant, and matured, positively touching the lives of millions of Indians, contributing to a transformative and inclusive financial future."