India’s leading cryptocurrency exchange, CoinDCX, is making a significant international move by acquiring BitOasis, a digital asset platform based in the Middle East and North Africa. The announcement was made on Wednesday by both companies.
CoinDCX, headquartered in Bengaluru, stated that the BitOasis team would be joining their ranks. The original leadership of BitOasis will continue to manage the platform, which currently offers trading in over 60 tokens. Despite the acquisition, BitOasis will retain its branding.
BitOasis, based in Dubai, has secured over $40 million in funding over its eight-year history. While the financial terms of the deal were not disclosed, a CoinDCX spokesperson revealed that BitOasis investors would receive equity in CoinDCX, describing the deal as profitable for BitOasis backers.
This expansion occurs during a period of regulatory challenges for cryptocurrency in India. The local central bank continues to exert pressure on lenders to avoid doing business with crypto firms, making India one of the least favorable jurisdictions for crypto trading due to a 30% tax on digital asset gains.
Facing a tough regulatory environment and a broader market downturn, leading crypto companies in India are exploring new avenues for growth. CoinDCX launched a decentralized exchange in 2022 and has been actively working to expand its operations.
CoinSwitch Kuber, another prominent Indian crypto exchange and a key competitor to CoinDCX, has diversified its offerings over the past year to include investments in stocks and mutual funds.
Backed by investors such as B Capital, Coinbase, Pantera, and Steadview, CoinDCX was valued at $2.1 billion in a 2022 funding round.
Local exchanges in India have benefited from the ban on Binance and several other international crypto exchanges this year due to non-compliance with local anti-money laundering rules. Some of these exchanges, including Binance, are now negotiating with Indian authorities and are expected to resume operations soon.
CoinDCX, which processes trading volumes exceeding $800 million each quarter, aims to become the premier trading platform for crypto globally, according to Sumit Gupta, CoinDCX co-founder and chief executive. “Our expansion strategy begins with the MENA [Middle East and North Africa] region, capitalizing on its mature market and the population’s keen interest in crypto investment,” Gupta said.
BitOasis reported processing $6 billion in trading volume since its founding in 2016.
