In a development that has stirred fresh doubts about user transparency in India’s crypto sector, CoinDCX—often promoted as “India’s safest crypto exchange”—is now facing scrutiny over its lesser-known Lithuanian entity, Oystex UAB. The discovery has alarmed crypto users and experts alike, raising serious questions about the true nature of the platform’s operational structure.
As per CoinDCX’s own Terms of Use, all crypto transmission services are operated not by its Indian entity, but by Oystex UAB—a private company incorporated in Lithuania in February 2023. This means that users depositing or trading on CoinDCX are, knowingly or unknowingly, engaging with a European custodian governed by Lithuanian and EU law, not Indian regulatory bodies like SEBI or FIU-India.
While such offshore setups aren’t rare in crypto—especially in the absence of clear Indian regulation—the lack of proactive disclosure from CoinDCX has raised eyebrows. Users were never informed through blog posts, product updates, or community alerts. The only mention of Oystex appears in dense legal documentation—buried in fine print most users never read.
The timing of Oystex’s incorporation has also come under scrutiny. It came shortly after Indian regulators began tightening oversight on crypto platforms, especially around AML/KYC compliance and fund custody. Yet, CoinDCX has offered no public explanation about why the Lithuanian entity was created, what its operational boundaries are, or how it interacts with the Indian user base.
At the center of this growing controversy is CEO Sumit Gupta, who has repeatedly positioned CoinDCX as a pro-India, regulator-compliant platform. His messaging, often amplified by paid influencers, continues to lean on nationalistic themes like “India’s safest crypto exchange.” But for a company outsourcing custody to Europe, these claims now appear misleading at best, and deceptive at worst.
In stark contrast, WazirX—another homegrown exchange that was attacked for $230 million in 2024—has taken a different approach. WazirX clearly distinguished its Indian operations (under Zanmai Labs Pvt Ltd) and its global structure (via Zettai Pte Ltd, Singapore). The company has filed multiple affidavits in the Singapore High Court, kept its users updated on its restructuring plan, and maintained transparency regarding fund recovery and jurisdictional oversight.
Experts say this level of disclosure should be a baseline, not an exception. WazirX is doing the right thing, keeping users informed every step of the way, CoinDCX, on the other hand, is silent when it matters most.
The incident has reignited a broader debate about transparency, accountability, and legal clarity in India’s digital asset space. While offshore structuring may remain a necessity for now, users deserve to know who holds their funds, under what jurisdiction, and what happens if things go wrong.
Until CoinDCX publicly clarifies the role of its Lithuanian affiliate, the platform’s silence will continue to erode trust in a space already fraught with regulatory uncertainty.
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