Following actions by India’s Financial Intelligence Unit (FIU) against global cryptocurrency exchanges, Indian crypto exchanges, including CoinDCX and Mudrex, have experienced a surge in deposits and user activity. The FIU’s call for compliance and blocking access to foreign exchanges has led to a significant shift of funds to local platforms, reshaping India’s crypto exchange landscape.
CoinDCX, a leading Indian exchange, has seen a remarkable 2000% increase in crypto deposits since the FIU’s announcement on December 28, 2022. Being the first registered entity with the FIU and emphasizing compliance and security, CoinDCX has become a preferred destination for investors.
The seamless process of transferring cryptocurrencies to CoinDCX has further enhanced its appeal. Sumit Gupta, co-founder and CEO, highlighted the increase in deposits and registrations, signaling a shift in investor preference towards platforms prioritizing regulatory compliance.
The transformative effect spread across India’s crypto market, with Mudrex reporting a sudden influx of $1 million in crypto deposits and an uptick in new users. Mudrex’s appeal lies in its zero-fee policy for crypto deposits and a user-friendly interface catering to both seasoned investors and newcomers.
Other major players like CoinSwitch and WazirX are also witnessing increased trading volumes and crypto deposits. CoinSwitch has seen a 30-35% surge in trading volumes, while WazirX reported a 250% increase in crypto deposits, riding the wave of heightened market activity.
The trajectory of Indian exchanges will depend on ongoing regulatory developments. If regulatory uncertainties persist and lead to actions against non-compliant foreign exchanges, users may continue to shift funds to compliant platforms like CoinDCX. The appeal of Indian exchanges could further increase with user-friendly interfaces and absence of deposit fees. However, the inherent volatility of the crypto market adds an element of unpredictability. Future trends will be influenced by global factors, market dynamics, and the evolution of regulatory policies. Clearer government guidelines on crypto trading will be pivotal in shaping the path ahead.