CoinDCX Offers 1% Bonus To Attract Crypto Investors As Offshore Exchanges Disappear From App Stores

CoinDCX, a leading homegrown cryptocurrency exchange is offering a unique incentive: a 1% bonus to investors who transfer their holdings to the platform. This move aims to capitalize on the recent government crackdown on offshore crypto trading platforms. CoinDCX has set aside $1 million for this purpose, with a maximum limit of ₹10,000 per person.

What Happened? Minal Thukral, EVP of Growth & Strategy at CoinDCX, anticipates this move will result in a 500% increase in new inflows, contributing to a staggering 10,000% rise in cryptocurrency deposits. “We’re dedicated to supporting the community transition with a $1 million incentive,” Thukral told ET in an interview. The offer, valid from January 8 to 17, 2024, assures investors a 1% bonus on deposits during the switch.

Why it matters? This initiative follows the recent surge in new inflows to CoinDCX. The platform experienced a 2000% increase in crypto deposits after the finance ministry issued notices to nine offshore crypto platforms, including industry giant Binance, and sought a ban on their URLs for non-compliance with Indian laws.

The financial intelligence unit targeted Binance's global offices and other exchanges like Kucoin, Huobi, and Gate.io, which reportedly contributed to a tax leakage of nearly ₹3,000 crore.

CoinDCX’s Thukral notes a significant uptick in users seeking compliant alternatives, with the platform’s user base now standing at 14 million. The recent positive trends in Bitcoin prices have bolstered confidence in the crypto market, with expectations of heightened trading activity. “The potential approval of the US’s first spot Bitcoin ETF and the bullish sentiments from major banks project Bitcoin to break its previous records,” Thukral added.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.