CoinDCX, India’s leading cryptocurrency exchange, has announced its acquisition of BitOasis, a prominent digital asset platform in the Middle East and North Africa (MENA).
This strategic move marks CoinDCX’s first international expansion. It leverages BitOasis’s established presence and regulatory licenses in the region to broaden its global footprint.
CoinDCX’s Strategic Expansion to MENA Region
Excited to share that CoinDCX has acquired BitOasis, the leading crypto platform in the MENA region!
In six years, @CoinDCX has gone from a small startup to a multi-product and now multi-country organization.
This first-of-its-kind transformative deal will empower us to expand… pic.twitter.com/tELFPenxUI
— Sumit Gupta (CoinDCX) (@smtgpt) July 3, 2024
CoinDCX, based in Bengaluru, revealed that BitOasis’s team would join CoinDCX while retaining its branding and leadership. This acquisition enables CoinDCX to leverage BitOasis’s licenses to operate across the MENA region, where BitOasis offers trading in over 60 tokens.
BitOasis, headquartered in Dubai, has raised over $40 million in funding over its eight-year history.
Though financial details of the acquisition were not disclosed, a CoinDCX spokesperson mentioned that BitOasis investors would receive equity in CoinDCX, ensuring a profitable deal for BitOasis backers.
This expansion comes amidst challenging regulatory conditions in India. The Indian central bank has pressured lenders to avoid business with crypto firms, and the government has imposed a 30% tax on digital asset gains. In response to these hurdles, Indian crypto companies like CoinDCX are seeking expansion beyond domestic borders.
CoinDCX, valued at $2.1 billion in a 2022 funding round, launched a decentralized exchange in 2022 and has been actively expanding its operations. The company has processed over $800 million in quarterly trading volumes and aims to become the “go-to trading platform for crypto worldwide,” according to co-founder and CEO Sumit Gupta.
Notably, CoinDCX is leveraging the ban on Binance and other international exchanges in India. These international exchanges are working to comply with Indian regulations to resume operations, but until then, CoinDCX benefits from their absence.
The company’s expansion strategy now targets the Middle East and North Africa (MENA) region, a mature market with a strong interest in crypto investments. CoinDCX’s plans in this region align with its vision of global growth. Since its founding in 2016, BitOasis, a regional player in the MENA market, has processed $6 billion in trading volume, illustrating the significant potential in this market.
CoinDCX Leveraging BitOasis License
BitOasis recently secured a broker-dealer license in Bahrain and is licensed in the UAE. Ola Doudin, co-founder and CEO of BitOasis, expressed excitement over the acquisition. She said,
“CoinDCX’s acquisition marks an exciting new chapter for BitOasis, one that propels us forward on a much stronger ground.”
She highlighted BitOasis’s regulatory milestones, such as being the first platform registered with the UAE Financial Intelligence Unit and securing a Central Bank of Bahrain license.
Doudin further emphasized that the acquisition would enable BitOasis to offer a broader product portfolio, enhanced crypto services, increased liquidity, improved trading options, and an enhanced user experience. This commitment to regulatory compliance and exceptional service is central to BitOasis’s operations.
According to a Q1 report, CoinDCX has seen a 2000% increase in customer deposits since the finance ministry issued show cause notices to nine major offshore exchanges, including Binance, on December 28 for not complying with local money laundering laws.
Since implementing a 1% tax deducted at source (TDS) on crypto exchanges in India in July 2022, domestic trading volumes have plummeted by roughly 90%.
Many Indian users shifted to offshore platforms, which did not comply with the TDS rule, leading to a significant loss in tax revenue. The recent show cause notices mandate that foreign exchanges implement the TDS or face a ban from operating in India, with a deadline to respond by January 11.
The post CoinDCX Acquires BitOasis, Expands into MENA Region appeared first on Cryptonews.
