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CoinDCX Acquires BitOasis to Drive International Expansion
CoinDCXIndia’s leading cryptocurrency exchange is expanding internationally through the acquisition of BitOasis, a digital assets platform in the Middle East and North Africa, the companies said on Wednesday.
The Bengaluru-based startup said the BitOasis team will merge with CoinDCX, with the original leadership continuing to operate the exchange, which offers trading in over 60 tokens. BitOasis will also retain its branding, CoinDCX told TechCrunch.
Dubai-based BitOasis has secured over $40 million in funding during its eight-year history. The two companies did not disclose financial terms of the deal, but a CoinDCX spokesperson told TechCrunch that BitOasis investors would receive equity in CoinDCX, adding that the deal was lucrative for BitOasis backers.
The expansion occurs in the middle a prolonged period of regulatory hostility towards cryptocurrencies in India, with the local central bank keep the pressure on other creditors to avoid doing business with cryptocurrency companies. India remains one of the least friendly jurisdictions for cryptocurrency traders, impose a 30% tax on profits from digital activities.
The regulatory environment, coupled with a downturn in the broader market, has forced major cryptocurrency firms in India to find other ways to maintain their growth. CoinDCX launched a decentralized exchange in 2022 and worked hard to expand it.
CoinSwitch Kuber parent company, India another unicorn cryptocurrency exchange — and a major competitor to CoinDCX — has diversified its offerings to include stock and mutual fund investments over the past year.
CoinDCX, backed by B Capital, Coinbase, Pantera and Steadview, was valued at $2.1 billion in a funding round in 2022.
Local trade has benefited India Ban on Binance and more than half a dozen other international cryptocurrency exchanges this year for failing to comply with local anti-money laundering regulations. Many of these exchanges, including Binance, are now in contact with the Indian regulator and are working to comply. They are expected to resume operations in India in the coming weeks.
CoinDCX, which processes over $800 million in trading volumes each quarter, aims to become the “go-to cryptocurrency trading platform worldwide,” CoinDCX co-founder and CEO Sumit Gupta said in a statement. “Our expansion strategy begins with the MENA region [Middle East and North Africa] region, taking advantage of its mature market and the population’s keen interest in cryptocurrency investments.”
BitOasis said it has processed $6 billion in trading volume since its founding in 2016.