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India’s FIU Ban: Local Players Offer Haven for Binance, OKX Users

Fredrik Vold
Last updated: | 2 min read
Bitcoin in India
Source: Adobe / promesaartstudio

Following the recent ban by India’s Ministry of Finance Financial Intelligence Unit (FIU) on offshore crypto exchanges like Binance, OKX, and others, Indian crypto exchanges are stepping in to offer solutions to affected users.

The FIU’s move has prompted Indian investors to seek secure and compliant alternatives for their crypto assets.

Prominent Indian crypto exchanges, including CoinDCX, WazirX, and BuyUcoin, are rolling out initiatives to facilitate the seamless transfer of assets from banned foreign crypto exchanges.

India’s CoinDCX offers 1% bonus as Binance and OKX users flock to alternatives

CoinDCX has allocated a $1 million fund to aid users in transferring their assets to compliant platforms. The exchange is offering hassle-free crypto deposits, accompanied by a 1% bonus, to support a smooth transition, it said in an announcement.

As reported earlier, CoinDCX reported a nearly 2,000% surge in deposits since offshore exchanges were served with a show-cause notice.

Zero-fee transfers to BuyUcoin India

BuyUcoin has announced zero-fee transfers

for users looking to move assets from offshore exchanges, aligning with the FIU ban.

In a statement from November last year, CEO Shivam Thakral expressed support for FIU’s measures. The statement emphasized the importance of investor protection and adherence to capital flight rules, saying:

“I believe our registration with the FIU is a testament to our commitment to operating with the ethical standards and protecting our customers and the financial system from the risks of money laundering and other. We are looking forward to working with the FIU and other regulatory bodies to combat money laundering and terrorism financing.”

WazirX also offers a bonus

WazirX has introduced a 1% bonus for users transferring their crypto holdings to its platform.

The well-known Indian exchange has witnessed significant growth in various metrics. This includes a 42.3% increase in P2P transactions, a 253% surge in spot trading volume, and a 114% rise in deposits (in crypto and Indian rupees) from November to January compared to the prior three months.

Non-compliance notice from FIU for Binance, OKX and others

Back in December, the FIU issued notices of non-compliance to several foreign crypto exchanges, including Binance, Huobi, Kraken, and others, for operating illegally in India.

The notice prompted Apple’s Indian app store to block foreign crypto exchanges, and Google’s app store followed suit.

Not surprisingly, the removals from the app store has created to a sense of urgency among users who had turned to offshore exchanges to avoid a 30% crypto tax.