Indian Crypto Exchanges Witness Surge in Trading Volumes, Deposits, and User Registrations
Leading Indian cryptocurrency exchanges are experiencing significant increases in trading volumes, deposits, and user registrations following the Financial Intelligence Unit’s (FIU) decision to issue compliance show-cause notices to nine global crypto exchanges. The FIU also requested the IT ministry to block their URLs for non-compliance with Indian regulatory norms.
Coin DCX: 2000% Surge in Crypto Deposits
Coin DCX, a prominent Indian crypto exchange, has seen a remarkable 2000% surge in crypto deposits since the FIU’s action. Coin DCX is the first FIU-registered entity and ISO-certified, which has helped boost investor confidence in its compliance and security measures. The platform has also witnessed a doubling of signups.
CoinSwitch: Jump in Trading Volumes
CoinSwitch, another well-known crypto exchange in India, experienced a significant increase in trading volumes after reinstating crypto deposits. Balaji Srihari, Business Head of CoinSwitch, noted a notable 30-35% surge in trade volumes following the FIU’s announcement.
WazirX: Higher Deposits and Transaction Amounts
WazirX, based in Bengaluru, saw higher crypto deposits as well as increased transaction amounts. Rajagopal Menon, VP of WazirX, reported a 250% rise in crypto deposits and a 100% increase in average transaction amounts. Most of the deposits came from Binance and other exchanges such as Kraken, KuCoin, Bitso, and Coinstash.
Smaller Exchanges Benefit from Investor Return
Even smaller Indian crypto exchanges are benefiting from the return of investors to familiar platforms. BuyUcoin, India’s second-longest-running digital asset exchange, witnessed a 2.5x jump in trading volume after the FIU’s recent action. The exchange’s strict compliance practices and adherence to KYC and AML procedures are contributing to its success.
Indian Investors Returning to Local Platforms
Indian crypto investors, who had turned to foreign exchanges due to crypto taxation in 2022, are now slowly returning to local platforms amid the uncertainty caused by the FIU’s actions. The combination of a broader bull run in crypto, a resurgent Bitcoin, the potential Blackrock ETF launch, and the robust compliance practices of Indian exchanges is attracting investors back to domestic platforms.
India Leading on Crypto Adoption Index
Despite strict positions from the Reserve Bank of India (RBI) and the finance ministry on cryptocurrencies, India has emerged as a leader on Chainalysis’ 2023 Crypto Adoption Index. This index measures cryptocurrency adoption levels across countries. Indian exchanges have been witnessing higher volumes in recent months, especially with Bitcoin crossing $40,000 in early December after a prolonged crypto winter.
Hot Take: Indian Crypto Exchanges Thriving Amidst Regulatory Actions
Despite regulatory challenges and uncertainty, Indian crypto exchanges are experiencing significant growth in trading volumes, deposits, and user registrations. The recent actions by the FIU have led to an increase in investor confidence and a return to local platforms. The compliance measures and security practices implemented by these exchanges have played a crucial role in attracting users. As India emerges as a leader in cryptocurrency adoption, it is expected that more investors will turn to domestic platforms for their crypto transactions.
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