In India’s crypto ecosystem, a new controversy has emerged around CoinDCX — one of the country’s prominent digital asset platforms. Recent attention has turned to its Lithuanian affiliate, Oystex UAB, which currently operates the platform’s crypto services. The discovery has prompted comparisons with WazirX, another Indian exchange that has publicly navigated its offshore structuring amidst a high-profile restructuring.
According to CoinDCX’s Terms of Use, all “crypto transmission services” are being handled by Oystex UAB, a private limited company incorporated in Lithuania in February 2023. This means that Indian user funds are technically managed under European Union jurisdiction, rather than by Indian regulators such as SEBI or FIU-India.
While international structuring isn’t uncommon in the absence of a comprehensive Indian regulatory framework, experts say it’s the lack of public communication that has sparked concern.
Having a global entity is not the issue; it’s a common practice in the Indian crypto space. The issue with CoinDCX is simple — if you’re operating under Lithuanian laws, users should be informed of this upfront, not just in fine print.
The timing of Oystex’s incorporation — closely following increased regulatory scrutiny in India — has also raised eyebrows. CoinDCX has yet to address why this entity was created and what its operational role is. Meanwhile, CEO Sumit Gupta continues to publicly emphasize CoinDCX’s “India-first” positioning, often referring to it as “India’s safest crypto exchange.”
Another concern raised by the community is the lack of clarity on the operational boundaries between CoinDCX and Oystex. Are user assets directly transferred to wallets controlled by Oystex? Who maintains custody in case of a fund recovery scenario or legal dispute? These are critical details users often overlook — and ones that haven’t been clearly addressed by the platform so far.
In contrast, WazirX, another prominent crypto exchange in India, suffered a $230 million cyberattack in mid-2024 and has taken a visibly different approach. It publicly clarified the distinction between its Indian entity (Zanmai Labs Pvt Ltd) and its Singapore-based entity (Zettai Pte Ltd). The firm has submitted multiple affidavits in the Singapore High Court, updating users about its restructuring and recovery steps.
According to experts, WazirX’s latest approach is commendable; they’ve kept their users informed about who’s holding custody and under what jurisdiction.
The contrasting approaches have reignited debate on transparency in the Indian crypto space. While international structuring may be a necessary workaround until Indian law catches up, investors and regulators alike are now calling for clearer and more transparent disclosures.
Ultimately, users deserve to know where their assets are stored, who holds custody, and which country’s laws will apply if things go wrong. And in that context, the silence surrounding CoinDCX’s Lithuanian entity appears increasingly difficult to defend.
