Indian crypto exchange CoinDCX has released the list of its on-chain and off-chain assets as part of proof-of-reserves (PoR). Last week, it released the reserves to liabilities (R2L) ratio for the top 10 assets. In an announcement on its site, CoinDCX has promised to provide monthly updates on its R2L ratio.
Indian exchanges are hit by high taxation and a stringent regulatory environment, with the beginning of the current financial in April 2022. In particular, they suffered a drop in trading volume of up to 90% since July 2022 when a hefty 1% transaction fee came into effect on virtually all crypto transactions.
Binance CEO Changpeng Zhao has twice highlighted the issue of high taxation on crypto trading in India this month, claiming it makes the country an unviable market. First, he talked about it at Singapore Fintech Festival and subsequently at TechCrunch Sessions: Crypto 2022 in Miami.
CoinDCX which closed a $135-million funding round led by Pantera Capital and Steadview Capital in April at a valuation of $2.15 billion has said that it is focusing on self-compliance and stringent internal scrutiny.
In recent months, Indian government agencies have increased their scrutiny of crypto exchanges and asked them to follow enhanced KYC and security norms. The Directorate of Enforcement, a financial crime investigation wing under the Ministry of Finance, is reportedly investigating several Indian crypto exchanges and fintech companies for suspected money-laundering activities.
