BENGALURU: Crypto exchange CoinDCX on Tuesday said it is earmarking a USD 1 million Treasury Fund to facilitate asset transfers for investors from non-FIU (Financial Intelligence Unit) compliant offshore exchanges.
The USD 1 million Treasury Fund will be utilised to offer a 1% bonus on all crypto deposits made between January 9 and 17, 2024, it said.
Last month, the FIU issued show cause notices to nine offshore crypto and virtual digital assets platforms including Binance for not complying with the Prevention of Money Laundering Act (PMLA) provisions in India. Later, crypto exchanges in India said that Indian investors should always aim to have their assets in FIU-compliant entities.
FIU IND also wrote to the Ministry of Electronics and Information Technology to block the URLs of the nine entities operating illegally.
CoinDCX has 1.4 crore investors and traders in India. According to various exchanges, investors are now transferring their assets from non-FIU complaint offshore exchanges to Indian exchanges. Last week it announced a 2000% surge in crypto deposits since December 28 on its platform.
Minal Thukral, EVP, of Growth & Strategy, CoinDCX, said, "We have always advocated investors to use platforms that prioritise compliance with regulatory frameworks and local laws."
Crypto investment platform Mudrex recently witnessed a surge of USD 1 million in crypto deposits from prominent exchanges, including Binance, following the FIU warning notice to overseas crypto exchanges.
In the wake of the FIU’s directives, Mudrex saw an influx of crypto deposits.
Edul Patel, CEO and co-founder of Mudrex said, “Indian investors should always aim to have their assets in FIU-compliant entities as it gives them a localised experience and more importantly a way for legal recourse against fraudulent activity on their account."