As part of ongoing efforts, India has directed numerous foreign cryptocurrency exchanges to demonstrate their compliance with the country’s Web3 sector laws.
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.
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.
CoinDCX has introduced a new incentive program offering users the chance to earn INR bonuses based on the total value of crypto deposits. The program applies to deposits made between January 8 and January 31, 2024, and users will receive a bonus of 1% of the cumulative value of their deposits in INR. The maximum bonus is capped at Rs. 10,000 per user. CoinDCX has reassured users that its operations are registered with India’s Financial Intelligence Unit (FIU) and pledged to adhere to the country’s cryptocurrency regulations.
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