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Indian Authorities Select CoinDCX to Manage Seized Cryptocurrency Assets

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  • India’s Enforcement Directorate (ED) has selected CoinDCX to manage seized cryptocurrency assets
  • CoinDCX has implemented strict security measures, including multi-signature and multi-party computation (MPC) wallets, and has deployed a specialized team to make sure there’s compliance and protection of the seized assets.

India’s Enforcement Directorate (ED) has chosen CoinDCX, the country’s largest crypto exchange, to handle confiscated digital assets. 

Through this partnership, CoinDCX will help offer a secure system to store and manage these funds, ensuring there is enough compliance and safety. 

CoinDCX Takes Charge of India’s Seized Crypto Assets

India’s Enforcement Directorate (ED) has chosen CoinDCX, the nation’s largest crypto exchange, to oversee all the seized cryptocurrency wallets in the country. 

 According to an announcement shared with Cryptonews, this decision comes as authorities intensify efforts to combat financial crimes involving cryptocurrency with recent major cases including the GainBitcoin and BitConnect scams, where nearly $200 million in digital assets were seized.

As part of this partnership, the exchange will provide a secure system to store and manage these assets. The exchange has already implemented strict security measures, including multi-signature and multi-party computation (MPC) wallets, to ensure protection.

They’ve also set up a dedicated team to oversee security and compliance, reinforcing the exchange’s commitment to maintaining trust in the crypto industry.

Sumit Gupta, co-founder of CoinDCX, emphasized the importance of this responsibility, stating that the exchange is committed to supporting law enforcement by offering top-tier security and compliance solutions. 

Assistant Director at the Enforcement Directorate Parneet Kumar also acknowledged the exchange’s cooperation in the seizure process, highlighting its role in ensuring legal compliance and opening of necessary custodian accounts.

This collaboration strengthens India’s regulatory approach to crypto-related crimes, ensuring that confiscated digital assets are securely managed while investigations continue. As cryptocurrency use rises in India, regulators are always trying to increase efforts to safeguard investors and prevent any illegal activities. 

CoinDCX, recognized for its strong security, compliance, and focus on investor safety, continues to lead in the industry. The company is committed to building a more safe, transparent, and regulation-friendly Crypto space in the country.

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BitOasis Earns Full VARA License: A Game-Changer for Dubai’s Crypto Market

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  • BitOasis receives a full Virtual Asset Service Provider license from Dubai’s VARA, expanding its crypto services.
  • CoinDCX acquired BitOasis in July 2024, strengthening its presence in the MENA crypto market.
  • BitOasis plans further regulatory approvals for expanded offerings and growth.

BitOasis, a pioneering crypto trading platform in the Middle East and North Africa (MENA), has earned its full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This announcement, made on December 9, marks a major step forward for the company following its acquisition by Indian crypto exchange CoinDCX.

With this approval, the platform is now fully authorized to offer a comprehensive range of cryptocurrency services, including buying, selling, and trading. The company plans to begin operating under the license immediately, highlighting its commitment to compliance and collaboration with Dubai authorities.

This achievement builds on BitOasis’ history of working closely with regulators in the UAE. The platform was one of the first to secure a provisional operating permit from VARA when it was established alongside new crypto regulations in 2022.

BitOasis Expands Services with License

The newly awarded license will enable BitOasis to enhance its services for retail, institutional, and qualified investors. It also sets the stage for future expansions, with the company aiming to secure more approvals from VARA and other regulatory bodies. 

However, the license has not yet permitted the company to engage in new activities. Instead, it allows the firm to improve its existing offerings, positioning it for broader regulatory recognition in the coming year.

This regulatory milestone follows a rocky period in 2023 when VARA briefly suspended its license for failing to meet specific conditions within the required timeframe. Despite this setback, the platform has continued to strengthen its foothold in the region, leveraging past regulatory approvals in Dubai and Bahrain to offer virtual asset broker-dealer services.

CoinDCX’s Growing Influence

CoinDCX, one of India’s leading crypto exchanges, acquired BitOasis in July 2024, marking its foray into the MENA market. This move was part of a broader expansion strategy, with the Indian firm’s self-custodial wallet Okto also receiving a license from the Ras Al Khaimah Digital Assets Oasis in August.

Currently, BitOasis supports trading in over 60 cryptocurrencies using local currencies like the UAE dirham and Saudi riyal. Its commitment to regulatory compliance and innovation has positioned the platform as a trusted player in a region rapidly embracing digital assets.

The full license from VARA signals not only a new era for BitOasis but also highlights Dubai’s growing role as a global hub for cryptocurrency innovation. With CoinDCX’s backing, BitOasis appears well-equipped to lead the charge in the MENA crypto market.

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CoinDCX Launches $6M Safety Net for Indian Crypto Investors

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CoinDCX, India’s top crypto exchange, has embarked on a transformative step towards investor protection by launching a groundbreaking Crypto Investors Protection Fund [CIPF] valued at INR 50 crores, or approximately $6.1 million. This move underscores the platform’s commitment to safeguarding user assets and fostering trust within the Indian crypto ecosystem.

With a primary focus on security, CoinDCX aims to set a new benchmark with the CIPF. This fund is touted to offer additional safeguards beyond the exchange’s traditional security measures. In the unlikely event of a hack or illegal breach, affected customers will be compensated from this fund, ensuring their investments remain secure.

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CoinDCX Launches $6M Safety Net for Indian Crypto Investors 2

The firm claims that its newly announced fund will help foster a sense of trust and security in the rapidly growing Indian market.

The enthusiasm for this promising asset class is incredibly high among Indians. With over 3 crore investors, India ranks among the top countries globally in this sector. With the launch of the CIPF, CoinDCX aims to further build trust in the ecosystem among the community. 

As per the blog post, CoinDCX is committing 2% of its brokerage income annually to the CIPF. This proactive approach demonstrates the exchange’s unwavering dedication to its users. With this initiative, CoinDCX aims to instill confidence among crypto investors and accelerate India’s journey towards becoming a global crypto hub.

Is your crypto safe? CoinDCX says, “Absolutely!” on feedback. The leading trading platform boasts of being India’s first FIU-registered exchange equipped with an ISO 27001:2022 certification and the latest security standards including multi-party computation [MPC], two-factor authentication [2FA], and other advanced encryptions. 

CoinDCX Doubles Valuation to $2.15B

The announcement comes after CoinDCX recently doubled its valuation to $2.15 billion after a fresh $135 million capital injection, intending to spread its footprint in the web3 and the crypto industry.

Steadview and Pantera Capital led the Series D financing round. Other prominent investors include Coinbase Ventures, Kingsway, DraperDragon, Republic, and Kindred Ventures also participated in the Mumbai-headquartered startup’s new funding. Till now, the platform has raised more than $245 million.

In an interview with a local news outlet, Sumit Gupta CEO of CoinDCX said that the funding exercise demonstrates the bullish sentiments of global investors in the Indian crypto ecosystem despite domestic regulatory challenges.

FIU Notice Spurs Shift: Indian Crypto Exchanges Draw In Binance And OKX Investors

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In response to the Financial Intelligence Unit’s (FIU) issuance of a notice of noncompliance against 10 foreign crypto exchanges on December 28, 2023, Indian crypto exchanges are now presenting enticing options for investors looking to transfer their crypto assets from banned offshore platforms. The Ministry of Finance Financial Intelligence Unit had imposed a ban on off-shore crypto exchanges such as Binance and OKX.

Several prominent Indian crypto exchanges have introduced appealing fee waiver deals to assist users facing challenges in moving their funds from prohibited foreign crypto exchanges. CoinDCX, a major player in the Indian crypto market based on trading volume, declared that it has allocated $1 million to facilitate the transfer of assets to compliant crypto exchanges.

Approximately USD 4 billion is currently invested by Indian investors in offshore crypto exchanges. In light of the recent regulatory developments and the ban on offshore exchanges, users are expressing concerns about the safety of their assets. They are actively seeking secure and compliant alternatives to sustain their crypto endeavors. Sumit Gupta, CEO of CoinDCX, shared insights on this matter with tronweekly, emphasizing the importance of ensuring a smooth transition for users amid these regulatory changes.

‘We have witnessed a remarkable 2000% surge in new inflows within the initial week following the issuance of show cause notices to non-compliant entities. In a bid to reinforce trust within the crypto community, CoinDCX has allocated a $1 million fund to assist investors in transferring assets from non-compliant offshore exchanges to the CoinDCX platform. The exchange is actively supporting users through seamless crypto deposits, accompanied by a 1% bonus, and has opened secure deposit routes for a smooth transition.”

Subsequently, BuyUcoin, another Indian crypto exchange, disclosed its initiative of facilitating zero-fee transfers for users moving their assets from offshore exchanges following the FIU ban. CEO Shivam Thakral expressed to Tronweekly that they view the FIU’s decision as a positive measure in safeguarding investor interests and upholding regulations governing capital flow in the context of foreign exchange entities.

FIU Acknowledgment: WazirX’s Bonus Spurs Surge In Crypto Activity

In a similar vein, WazirX, a prominent exchange, introduced a 1% bonus for users transferring their crypto holdings to the platform. This move resulted in a noteworthy surge, with a 42.3% increase in peer-to-peer transactions, a substantial 253% rise in spot trading volume, and a remarkable 114% uptick in overall deposits (comprising both crypto and INR) from November to January, compared to the preceding three months. Rajagopal Menon, vice president of WazirX, conveyed to Tronweekly that the recent actions taken by the FIU were overdue and necessary for the market.

“I think it was long overdue. Foreign exchanges were making merry at the expense of Indian exchanges because of regulatory and tax arbitrage. It was a bad situation for everybody: Indian users had no recourse, the government lost tax revenue, and Indian exchanges lost market share.”

The Financial Intelligence Unit (FIU), a division of the Indian Finance Ministry, issued a notice of non-compliance to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex for allegedly conducting illegal operations in India on December 28, 2023. Providing a one-week window for crypto exchanges to respond, the FIU recommended the IT department to block the URLs of the mentioned foreign crypto exchanges in case of non-compliance.

Around two weeks after the FIU notice, on January 10, Apple’s Indian app store took the step of blocking all foreign crypto exchanges, while the Android app store still hosted them. Subsequently, within a week, these foreign crypto exchanges were also barred from Google’s app store. This development caused anxiety among Indian users who had turned to foreign exchanges like Binance to avoid a hefty 30% crypto tax.

Various Indian crypto influencers deliberated alternative methods for users to access the banned platforms in India, including through virtual private networks. However, BuyUcoin cautioned against such approaches, citing potential severe consequences for Indian users, such as the risk of losing their crypto assets or money to phishing sites and other online scams.

In response to the regulatory changes, OKX has reportedly initiated the process of requesting Indian users to update their personal information to align with local regulations, indicating a shift towards compliance with the FIU’s directives.

India’s First Crypto Unicorn Battles for Tax Reform

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The cryptocurrency landscape in India has undergone a seismic transformation since the contentious introduction of the Tax Deducted at Source [TDS] in 2022. In the wake of dwindling digital asset transactions, prominent figures within the industry have raised concerns. Sumit Gupta, the CEO of CoinDCX, India’s first crypto unicorn, has emerged as a leading advocate for lobbying the government for a reduction in the TDS rate from 1% to a mere 0.01%.

The previous year witnessed the implementation of a flat 30% tax on all crypto income in the nation, coupled with the imposition of a 1% TDS on crypto trades exceeding 10,000 Indian rupees [approximately $122]. Shockwaves from these tax measures were felt across the cryptocurrency landscape, prompting an estimated $3.85 billion in capital to migrate from domestic centralized crypto exchanges to foreign counterparts between February and October 2022, all in an effort to evade the tax burden, as reported by the Indian think tank, Esya Centre.

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India's First Crypto Unicorn Battles for Tax Reform 4

In a previous interview, Sumit Gupta argued that reducing the TDS rate to 0.01% could yield a win-win scenario. Firstly, it might entice traders back to Indian exchanges, aligning with the government’s objective of tracking virtual digital asset [VDA] transactions to combat money laundering. Secondly, it would contribute to the country’s tax revenue. Gupta further advocated for the tax treatment of crypto trading on par with other asset classes, such as equities.

Indian Crypto Exchanges: The Future

CoinDCX, valued at over $2 billion, plays a pivotal role as a founding member of the Bharat Web3 Association, an industry lobbying group. This collective has been actively advocating for clarification of the legal status of digital assets and the allowance of crypto traders to offset losses against other investment gains for tax purposes.

Despite these efforts, Nischal Shetty, the CEO of the WazirX exchange, cautioned that a transition to a more lenient crypto tax regime in India might still be a couple of years away. Shetty explained, “I don’t think we’ll see any immediate reduction in TDS since there have been no formal discussions between the industry and lawmakers specifically around it.”

India’s stance on cryptocurrency appears to be poised for transformation, as articulated by the Finance Minister. Ajay Seth, Secretary of the Department of Economic Affairs, announced during the recently concluded G20 leaders’ summit that “India’s approach to crypto will be determined in the coming months.”

He underscored that the G20 had established a framework for assessing risks, and India would base its policy decisions on the global consensus forged by world leaders. The crypto landscape in India stands at a crossroads, with the future direction hanging on the balance between taxation and industry growth.

CoinDCX’s valuation doubles following $135M Funding

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India’s leading trading platform CoinDCX has doubled its valuation to $2.15 billion after a fresh $135 million capital injection, with an aim to spread its footprint in the web3 and the crypto industry in general co-founder Neeraj Khandelwal tweeted today.

The Series D financing round was spearheaded by Steadview and Pantera Capital. Others who backed the funding exercise were Coinbase Ventures, Kingsway, DraperDragon, Republic, and Kindred Ventures also participated in the Mumbai-headquartered startup’s new funding. To date, CoinDCX has raised more than $245 million.

In an interview with a local news outlet, Sumit Gupta CEO of CoinDCX told that the recent funding exercise demonstrates the bullish sentiments of global investors in the Indian crypto ecosystem despite domestic regulatory challenges.

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CoinDCX's valuation doubles following $135M Funding 6

The news also comes weeks after India’s crypto taxation rule came into effect. The rule imposed 30% on income generated on digital assets and also includes a 1% tax deduction at source for each trade. This resulted in a drastic reduction in the daily trading volumes across crypto exchanges as many investors and traders continue shunning crypto assets.

Admitted to being hit by the move, Gupta noted that the 1% TDS has made it somewhat less feasible for some High-Frequency Trading [HFT] to perform normally. “We continue to see new users come to the platform, but the growth is not as high as it used to be, say, two months ago,” he added.

CoinDCX to double down on its compliance efforts

The startup plans to double down on its compliance efforts, he said. “We will do whatever it takes to give more comfort to the regulators,” he said.

The crypto trading platform became the first Indian crypto firm to attain the unicorn status last year having amassed over 10 million users. Besides enabling users to purchase tokens for as low as 100 Indian rupees [$1.3], CoinDCX also provides margin trading and the option to stake digital assets.

CoinDCX, in collaboration with Facebook co-founder Eduardo Saverin’s B Capital, is also working to educate the retail investors and help contribute to expanding the local ecosystem, the exec said. The startup plans to introduce educational content and byte-sized videos in its app, Gupta said.

India’s first crypto-unicorn ramps up hiring program after crossing 10M users

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India’s foremost crypto-unicorn CoinDCX has accelerated its pace of hiring to meet the growing demand of its rapidly expanding user base. Last month, the platform achieved a new milestone when the number of users crossed more than 10 million [1 crore] from 140k at the end of 2020.

Mudita Chauhan, head, of human resources at CoinDCX, said that there has been a significant increase in the number of people being onboarded within a year. “As the business scales up, we shall see a significant rise in headcount. Next year we should be more than double where we are today and the trend should continue over a period of time,” said Chauhan.

“The huge visibility around crypto trading is pulling a lot of young people into the industry. But the underlying potential of blockchain technology and its use case not just for cryptocurrency trading and in the financial industry, but across other industries is also contributing to the heightened interest in the sector.”

As a matter of fact, hiring particularly in crypto exchanges has been focused on areas such as developers, trade operations, customer service, risk, compliance, and engineering.

Crypto firms on a massive hiring spree

Despite the current market upheaval, cryptocurrency exchange sees “enormous product opportunities ahead for the future of Web 3.” U.S. biggest cryptocurrency exchange by trading volume, Coinbase is looking to take in up to 2,000 people this year as it seeks to take advantage of opportunities in the development of Web 3 and other areas, Chief People Officer L.J. Brock said in a blog post on Feb.15.

The platform, as per the announcement post, is working to expand its product, engineering, and design teams

Just a month ago, leading crypto exchange Kraken’s chief legal officer Marco Santori via Twitter set an ambitious goal of doubling the size of his team- to hire 30 lawyers in three months. Santori said he already ‘raided Wall Street’ for regulatory talent and now wants to onboard lawyers.

The competition is not only fierce but historically fierce. I don’t think the lawyer market has ever been this tight, period, full stop,” he said.

Floki Inu available to millions through CoinDCX listing

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Floki Inu has been added to CoinDCX Pro, yet another Indian cryptocurrency exchange platform. CoinDCX had declared that the altcoin would be listed at 8.30 p.m. on 2 March 2022.

Floki Inu (FLOKI) is a meme coin that is dog-themed. This altcoin calls itself “a movement” rather than a meme coin. This cryptocurrency was created by Shiba Inu (SHIB) fans and the SHIB community members. Elon Musk’s Shiba Inu inspired the coin’s form.

Floki Inu and Indian Soccer club, Kerala Blasters FC, partnership

Not very long ago, FLOKI had announced its partnership with the Indian football club. On 19 November 2022, the meme coin took to its Twitter handle to announce its collaboration with Kerala Blasters FC, one of the top football clubs in India, as a sleeve sponsorship deal.

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Kerala Blasters are one of the best teams in the category, having won second place in two championships. In the then-new Indian Super League season, the meme coin’s logo and website were to be displayed on Kerala Blasters’ kit sleeves.

The ISL, which began in 2013, is India’s elite soccer league, with 11 teams competing in the 2021-2022 season. With over 130 million global fans, the league is the fifth most renowned in the world.

The agreement, which took effect immediately, also included Floki Inu’s logo being displayed on LED screens during home games at the team’s 41k accommodation stadium.

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Kerala Blaster’s new kit with FLOKI as sponsor

The goal of the collaboration for meme coin was to help crypto become ubiquitous in India and get access to the large market there. Due to the soccer league’s global popularity, Floki Inu has also garnered more global recognition with the sponsorship.

However, this wasn’t the first time a sports team has teamed up with a cryptocurrency company. For a long time, crypto-related businesses have been establishing sponsorship agreements with teams from all over the world.

Sports appeal to a wide range of audiences, thus crypto organizations find them to be an excellent way to sell to a large audience. Elon Musk’s favorite crypto, Dogecoin, also signed a kit agreement with English Premier League club Watford FC earlier in 2021. At the time of writing, Floki Inu was priced at $0.00003614 with a daily plunge of 8.9%.

CoinDCX exchange aims for IPO amidst the regulatory prevailing strictness

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Despite regulatory uncertainty, the Indian crypto ecosystem is flying high, as evidenced by the number of crypto companies achieving unicorn status in the last two years.

CoinDCX, one of India’s most popular crypto exchanges and the country’s first crypto unicorn, has announced plans to go public through an initial public offering (IPO). The crypto exchange’s co-founder, Neeraj Khandelwal, disclosed that the company is eagerly waiting for clarification over the government’s crypto law.

The cryptocurrency industry is eyeing the Indian market, which is scheduled to present its cryptocurrency bill in parliament today. The law will be presented before for discussion and vote during the ongoing winter session, and every crypto platform is hoping for a favorable outcome. 

CoinDCX awaiting government’s approval

“As soon as the government or the situation allows us, we will try for an IPO. An IPO gives legitimacy to the industry, just like the Coinbase IPO gave a lot of confidence in the crypto markets. Similarly, we want to instill a similar level of confidence with an IPO of CoinDCX.”

The co-founder further added

After a $90 million Series C investment in August, CoinDCX, with a $1.1 billion valuation, became India’s first crypto exchange Unicorn. Major venture capital firms have made significant investments in the Indian crypto ecosystem, with plans to continue doing so in light of the market’s immense potential.

Where is India in the Web 3.0 Crypto Race?

The Indian crypto market is known to be highly enthusiastic, and the country has the largest number of crypto investors in the world. 

Positive rules and regulations would pave the way for India to become a global force to be reckoned with in a decentralized environment, and it may be a significant player in the Web 3.0 race.

Khandelwal said that the bill coming out at this point signifies development and acknowledgment from the government side to solidify the crypto investment base.

India is already the world’s biggest cryptocurrency market with more than 100 million investors but the regulatory clearance is still missing from the nation. As the government aims at banning “private cryptocurrencies,” a clarity is missing.

Indian Cryptocurrency Exchange CoinDCX Raises Millions in Latest Investment Round

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Bitcoin and the rest of the cryptocurrency market have tried their best to become mainstream after a decade of their inception. This growing financial sector has become so important that regions around the world have begun to rethink their applications.

India was one of the few countries vehemently opposed to cryptocurrencies. The ban on cryptocurrency has been so effective that digital asset companies have been brought to the ground while many have relocated. Following the recent withdrawal of the ban by the Supreme Court of India, the country has seen a dramatic increase in the number of crypto investors.

CoinDCX was one of the few Indian cryptocurrency exchanges that were ramping up efforts to expand Indian cryptocurrency space. According to new reports, the exchange raised more than $3 million from investors in its most recent funding round. CoinDCX claimed that the new space investors were excited to form an ecosystem of change, innovation, and rapid progress.

According to sources, CoinDCX raised more than $3 million from investors like Bain Capital Ventures, Polychain Capital and HDR Global Trading. HDR Global Trading sounds familiar because it is involved in operating cryptocurrency exchanges like the popular BitMEX.

The sudden surge in investments started right after the Indian Supreme Court adjudged that the 2018 ban on crypto was unjust. According to the premier court in the country, the RBI’s stance on digital assets would hamper growth and development in the country. Sumit Gupta, the CEO and Co-founder of CoinDCX stated:

“As the country’s largest exchange, we are in a position to drive national crypto adoption forward responsibly. This successful investment round will go a long way in funding our vision of accelerating India’s growth into a US$5 trillion economy. With a slew of exciting projects in the pipeline, the closure of our Series A is the first step in a new chapter in the CoinDCX story as we continue to drive the mass adoption of crypto assets in India.”

CoinDCX stated that it would use the capital to revamp its marketing aspects as well as boost its product developments. Sumit Gupta added that cryptocurrency as an asset was just about to take off in the country. India stands in the perfect position to leverage the current market and draw attention to the changes in the space, said Sumit Gupta. CoinDCX was one of three Indian cryptocurrency exchanges that remained open during the ban and it looks like it paid dividends.

The exchange will allow more users to get on board by buying cryptocurrencies with fiat. One of the USP’s of CoinDCX has been its algorithm-based trading that has enabled users to make seamless transactions. The good news was in complete contrast to the situation in 2018 when the industry crumbled in India after RBI’s decision. CoinDCX has also pledged $1.3 million for a campaign called ‘TryCrypto’. The aim of the program is to increase the number of crypto users in India to 50 million.

The CoinDCX development came right after Tim Draper made glowing comments about the Supreme Court’s decision. The serial investor admitted that he would be interested in contributing to some of the great projects in India and boost the cryptocurrency space.