Indian Crypto Exchange Faces Scrutiny Amid Regulatory Focus
In the wake of increasing regulatory oversight in India’s cryptocurrency space, CoinDCX has denied recent allegations regarding the transfer of user funds to non-compliant entities based in Lithuania. The claims surfaced as part of court proceedings initiated by rival exchange WazirX, which is currently under investigation following a $230 million security breach in 2024.
CEO Clarifies: No User Funds Held in Lithuania
CoinDCX’s Co-founder and CEO, Sumit Gupta, issued a statement rejecting the accusations, saying:
“Please don’t fall for misinformation. No user funds have ever been transferred to Lithuania-based entities.”
According to Gupta, all user funds—both INR and crypto assets—are held by Neblio Technologies, a Financial Intelligence Unit-India (FIU-IND) registered company based in India. This, he emphasized, ensures full compliance with national regulations.
Affidavit Misrepresents Facts, Says CoinDCX
The allegations, brought forth in a Singapore High Court affidavit, stated that CoinDCX operated through a Lithuania-registered entity which was not listed with India’s FIU until February 2025. CoinDCX clarified that it did not have any active operational entity in Lithuania until that date, and even then, any association was limited to exploring potential global expansion.
“No business was ever conducted in Lithuania. No user funds were stored or moved to any Lithuania-based platform,” Gupta reiterated.
Terms of Use Updated for Transparency
In an effort to increase regulatory alignment, CoinDCX updated its Terms of Use on February 7, 2025, formally listing Neblio Technologies as the contracting entity for its Indian user base. This move was aimed at boosting transparency and reinforcing user trust.
“This change was implemented proactively to avoid any operational challenges and protect user interests,” said Gupta.
Focus Remains on Compliance and User Security
Amid India’s evolving digital asset regulation, CoinDCX reaffirmed its commitment to compliance, user protection, and transparent operations. Gupta also encouraged other domestic exchanges to implement similar safeguards to prevent user disruption in uncertain regulatory environments.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.