News

The Indian competition regulator has given the green light to the American crypto exchange Coinbase to acquire a minority stake in the local CoinDCX platform. This decision, which was published on Wednesday, legally formalizes the possibility for closer cooperation between the two companies.

In fact, the approval concerns investments in DCX Global Limited, the parent company for CoinDCX. This is not the first time an American company has invested in an Indian platform: Coinbase was already involved in financing CoinDCX about four years ago. However, the new decision on additional investments is especially important, as it occurs against the background of the resumption of registration of new users from India by Coinbase. This feature has not worked for two years, and its return, which coincided with the approval of the regulator, shows that the company is carefully and systematically returning to the Indian market.

This year has been full of difficulties for CoinDCX. In the summer, they faced a serious security problem when more than $44 million was leaked from one of their wallets. But the company assured that the customers' money was not affected.
Despite the opportunities, India is still a difficult market for crypto companies. The main problems are high taxes on transactions with cryptocurrencies and uncertainty in terms of regulation in the long term.

As a result, the approval of the deal from the Indian regulator is an important step that allows Coinbase to legitimately expand its operations in an important market.