Transparency and Compliance Will Continue to be The Focus for CoinDCX for 2024 & Beyond

Sumit Gupta & Neeraj Khandelwal, Co-Founders, CoinDCX

As we write to you, an important directive from FIU-IND has bolstered our confidence. Last night FIU-India issued show cause notice to nine offshore entities providing services to Indians without complying with the provisions of PML Act. The news also suggests that FIU-India has requested Ministry of Electronics and Information Technology to block URLs of these. We have consistently advocated for robust regulatory frameworks that ensure transparency, protect consumers, and combat financial crime. In the dynamic and evolving landscape of the crypto space, establishing trust is pivotal for achieving mass adoption. 

As we enter 2024, we want to assure our community that transparency and compliance will continue to remain the driving force behind every activity at CoinDCX. We are committed to maintaining focus on this principle without any distractions.

2023: A Year of Transparency and Compliance in India

2023 marked a significant year for transparency and compliance among Indian crypto players. With FIU-IND requiring Indian Virtual Digital Asset (VDA) Service Providers to register and adhere to PMLA guidelines, 31 VDA Service Providers became FIU reporting entities, demonstrating a strong commitment to compliance. CoinDCX takes pride in being the first exchange to be an FIU-Registered Reporting entity. The recent directive of FIU to offshore VDA service providers  reinforces our belief in “Building in India” and fosters a healthier environment for both domestic exchanges and Indian VDA users.

 Similarly, in response to the government’s introduction of TDS and taxation in 2022, CoinDCX partnered with KoinX, a leading crypto taxation platform, ensuring efficient generation of crypto tax reports for traders. In fact, of the total ₹105 crore VDA TDS collected by the Indian government, CoinDCX contributed ₹70 crore.

Over the years, we have been regularly implementing tech-based solutions to further strengthen our internal ecosystem and to ensure a safe and secure environment for our users.

Upholding Transparency by Publishing Proof of Reserves and Liability Reports

In 2022, following the FTX incident, CoinDCX promptly responded by publishing Proof of Reserves (PoR) and Liability reports. As we have emphasized before, PoR is just one part of the picture. There needs to be equal visibility of liability to ensure a healthy Reserves-to-Liability (R2L) ratio. We worked with reputed audit firms to certify our financial health, and in 2023, we continued with this commitment, publishing three quarterly releases.

Prioritizing Consumer Protection 

Achieving ISO 27001:2022 certification marked yet another significant milestone, underscoring CoinDCX’s commitment to stringent security standards.

With consumer protection being the central theme, CoinDCX remained committed to the 7M Model. This comprehensive approach goes beyond token-listing processes, educating investors on the risks, characteristics, and technical aspects associated with each crypto project. The model reflects CoinDCX’s commitment to fortifying the safeguarding of retail investors.

Building for the Future: CoinDCX’s Global Expansion and Web3 Leadership

As we have always said, bear markets are for building new products, and during bull markets, you have the opportunity to scale up. This is exactly what we as a team delivered in 2023. We focused on enhancing the user experience on our platform, introduced the Okto Wallet app for global users, strengthened our position in the world of DeFi, and launched the Okto SDK to seamlessly integrate the Okto Wallet with existing web2 apps to drive mass adoption.

Looking ahead to 2024, CoinDCX aspires to become a global Web3 leader, acting as the gateway to both CeFi and DeFi, with a core emphasis on “Fi” within the Web3 spectrum. India remains central to this focus, and in the coming year, compliance, user experience, and international expansion will be pivotal aspects of CoinDCX’s strategy.

Transparency Will Continue to Remain Our Guiding Principle

In a world where belief often paves the way for transformative change, the increasing embrace of crypto by over 400 million individuals globally speaks volumes. At the heart of this belief lies blockchain—a technological marvel that fundamentally redefines transparency in financial transactions. As this belief gains momentum, the responsibility of the crypto industry becomes paramount.

In this wave of collective belief, for us this is a movement—one that carries the responsibility of steering the ship towards a trusted crypto ecosystem. As more people join this movement, the inevitability of crypto becoming an integral part of daily life looms large. It’s not a matter of if but when, as we envision at least 60-70% of the global population embracing crypto—a shift that will redefine the very fabric of our financial interactions.

As the journey unfolds into 2024, CoinDCX remains steadfast in its pursuit of a trusted crypto ecosystem, reflecting the aspirations of millions and standing the test of time. The dedication to doing the right thing is embedded in CoinDCX’s core values. To ensure alignment with these values, internal principles guide employees in adhering to ethical standards and complying with established regulations. 

Here’s to building an even brighter future at CoinDCX! Here’s to making history together! 

Wishing you and your families a prosperous and fulfilling 2024.