Indian crypto exchange platform, CoinDCX has earmarked a $1 million Treasury Fund to facilitate asset transfers for investors from non-FIU-compliant offshore exchanges.
The company added in its statement that the fund will be utilised to offer an exclusive 1 per cent bonus on all crypto deposits made between January 9 and 18, 2024.
Due to a notice issued by the Financial Intelligence Unit (FIU) to nine overseas crypto exchanges for non-compliance with anti-money laundering laws, and urging the Ministry of Electronics and Information Technology to block URLs of offshore entities operating illegally, these entities have failed to comply with the provisions of the Prevention of Money Laundering (PML) Act in India.
The company has observed that users on offshore exchanges have been exploring safer and more compliant alternatives. This has resulted in CoinDCX witnessing an impressive 2000 percent surge in crypto deposits since December 28, 2023.
The company has over 1.4 crore investors and traders in India.
Minal Thukral, EVP, of growth and strategy, CoinDCX, emphasises, "We have always advocated investors to use platforms that prioritize compliance with regulatory frameworks and local laws. 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. The $1 million treasury fund is a step in that direction. 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."
Through the fund, the company is offering an exclusive 1 per cent bonus to users during a special promotion period. Users can participate by depositing their crypto holdings into CoinDCX, engaging in Spot or Futures trading, and utilizing products like Earn (staking products). Eligible users stand to receive 1 per cent of the USDT (formerly known as USD Tether) equivalent of their crypto deposits during the campaign period. The maximum bonus is capped at Rs 10,000 per user, the company said.