Indian cryptocurrency exchanges like CoinDCX and Mudrex are experiencing a notable surge in deposits and new user sign-ups in the aftermath of compliance show cause notices issued to foreign exchanges, including Binance, by the Financial Intelligence Unit India (FIU IND).
CoinDCX reported a staggering 2,000% increase in crypto deposits within a week of the notice issuance. Meanwhile, Mudrex recorded over $1 million in deposits and welcomed 10,000 new users to its platform.
On December 28, Virtual Digital Assets (VDAs) service providers, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, were served show cause notices by FIU IND under the Prevention of Money Laundering Act (PMLA) for non-compliance with local money laundering laws. The regulatory crackdown also extended to blocking their URLs.