Coinbase Invests In CoinDCX, Boosting Valuation To $2.45B In India-UAE Expansion
Coinbase has extended its investment in Indian crypto exchange CoinDCX, boosting its valuation to $2.45 billion and supporting its expansion in India and the UAE.
The funding, an extension of Coinbase Ventures’ prior backing, will fund regional growth, product innovation, and broader web3 offerings, a CoinDCX statement said.
“This fresh capital helps us accelerate our vision and enables us to take bolder and more ambitious bets – strengthening our business across India and the UAE,” the Indian exchange said.
The value of the investment was not disclosed.
India And Middle East Will Play “A Big Role” In Crypto’s Future, Says Coinbase
Coinbase said in blog post that India and the Middle East are set to play a crucial role in the future of crypto.
It said that there are over 1.4 billion people and more than 100 million crypto users in these regions, combined.
”We believe India and its neighbors will help shape the future of the global onchain economy,” it said. ”CoinDCX is a high-growth, financially sound business built for scale at the center of the region’s massive growth opportunity.”
Meanwhile, as of July this year, CoinDCX’s annualized group revenue is ₹1,179 crore (~$141M USD), annualized transaction volumes across products are ₹13.7 lakh crore (~$165B USD), and assets under custody are over ₹10,000 crore ($1.2B USD), Coinbase said in its post.
Financials shared by DCX Group (Source: CoinDCX)
That is even after CoinDCX suffered a $44 million hack earlier this year.
CoinDCX, which expanded into the Middle East and North Africa (MENA) region following its acquisition of BitOasis last year, has a user base exceeding 20.4 million.
India Still A Small Crypto Market Due To Regulatory Uncertainty
Despite its population, India is still a relatively small crypto market. This is partly due to regulatory uncertainty. The government has also imposed a flat 30% tax on digital asset gains, as well as a 1% levy on each transaction.
New Delhi has also restricted offshore exchanges unless they register with the country’s financial watchdog, the Financial Intelligence Unit (FIU).
Recently, 25 global platforms, including LBank, BingX, and CoinW, came under scrutiny for failing to register and comply with anti-money laundering rules.
Coinbase also halted its operations in India in 2023, and only formally re-entered the market earlier this year after it registered with the FIU.
The US exchange is also an investor in another leading Indian crypto platform called CoinSwitch.
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