CoinDCX acquires BitOasis for international expansion

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India’s leading cryptocurrency exchange, CoinDCX, is expanding internationally through the acquisition of digital asset platform BitOasis in the Middle East and North Africa, the companies said on Wednesday.

The Bengaluru-based startup said that while the BitOasis team is joining CoinDCX, the original leadership will continue to manage the exchange, which offers trading in over 60 tokens. BitOasis will also retain its branding, CoinDCX told TechCrunch.

Dubai-based BitOasis has raised more than $40 million in funding in its eight-year history. The two companies did not disclose the financial terms of the deal, but a CoinDCX spokesperson told TechCrunch that BitOasis investors will receive equity in CoinDCX, adding that the deal is a win-win for BitOasis backers.

The expansion comes amid a long period of regulatory hostility towards cryptocurrencies in India, with the local central bank maintaining pressure on other lenders to avoid doing business with crypto firms. India remains one of the least friendly jurisdictions for crypto traders, levying a 30% tax on digital asset gains.

The regulatory environment, combined with the broader market slowdown, has forced top crypto companies in India to find other ways to sustain their growth. CoinDCX launched a decentralized exchange in 2022 and is working aggressively to expand it.

The parent company of India’s second unicorn crypto exchange, CoinSwitch Kuber, has diversified its offerings to include investments in stocks and mutual funds last year. CoinDCX – backed by Steadview, Pantera, B Capital and Coinbase – was valued at $2.1 billion in a funding round in 2022.

Local exchanges have benefited from India’s ban on Binance and more than half of other international crypto exchanges this year for not complying with local anti-money laundering regulations. Many of these exchanges, including Binance, are now in contact with the Indian authorities and working towards compliance. They are expected to resume operations in India in the coming weeks.

CoinDCX, which processes more than $800 million in trading volume every quarter, aims to become the “go-to trading platform for crypto worldwide,” CoinDCX co-founder and chief executive Sumit Gupta said in a statement. “Our expansion strategy starts with the MENA region, leveraging its mature market and the population’s keen interest in crypto investing.”

BitOasis said it has processed $6 billion in trades since its founding in 2016.

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