WazirX accused CoinDCX of improperly transferring user assets to Lithuania-based non-compliant entities, potentially violating Indian regulations. The allegations suggest funds were moved without adequate KYC/AML safeguards, exposing users to counterparty risks. This emerged amid India’s ongoing regulatory uncertainty, where exchanges face intense scrutiny over fund handling practices.
CoinDCX CEO Sumit Gupta categorically denied the claims, asserting full compliance with all financial regulations. The exchange maintains that all user funds remain securely custodied within approved frameworks. This incident highlights the competitive tensions in India’s crypto landscape as exchanges jockey for position during regulatory limbo.
The public denial may temporarily reassure users but underscores systemic vulnerabilities in emerging markets’ crypto infrastructure. Without clear regulatory guidance, such allegations could accelerate user migration to global platforms. Resolution depends on transparent third-party audits to verify fund flows and custody arrangements.
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.
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Editor-in-Chief / Coin Push Dean is a crypto enthusiast based in Amsterdam, where he follows every twist and turn in the world of cryptocurrencies and Web3.
