CoinDCX Denies WazirX Claims, Affirms FIU-Compliant Custody
CoinDCX has denied allegations by rival exchange WazirX that it routed user funds to an unregistered Lithuanian entity. WazirX claimed these assets were held through a unit not registered with India’s Financial Intelligence Unit (FIU) until February 2025. CoinDCX clarified that all user funds are held by Neblio Technologies, an Indian-registered company fully compliant with FIU regulations. This move underscores CoinDCX’s commitment to transparent custodial practices and regulatory compliance amid growing scrutiny in India’s crypto sector. The dispute follows WazirX’s own regulatory challenges after a $230 million security breach last year.
Neutral
The denial by CoinDCX is unlikely to trigger major market moves. Traders often view such clarifications as routine dispute resolutions that restore confidence without shifting fundamentals. While reaffirming FIU-compliant custody may ease regulatory concerns, the core business remains unchanged. Past incidents—like exchanges clarifying compliance issues—have had neutral or limited short-term impact on trading volumes and prices. In the long term, transparent custodial practices support market stability, but this news alone does not drive a clear bullish or bearish trend.