India Crypto Exchange CoinDCX Buys BitOasis in Mideast Expansion

Indian cryptocurrency exchange CoinDCX has acquired Dubai-based BitOasis, marking the beginning of its global expansion strategy. The acquisition, which follows CoinDCX’s initial investment in BitOasis last year, provides the Indian firm with a strong presence in the MENA region, serving both retail and institutional clients, according to CoinDCX co-founder Sumit Gupta. The details of the transaction have not been disclosed.

This move aligns with Dubai’s efforts to become a leading hub for crypto businesses, competing with other major cities like Singapore and Hong Kong. CoinDCX is focusing on regions with clear regulatory frameworks for cryptocurrencies as part of its growth strategy, Gupta mentioned in a Bloomberg News interview.

BitOasis, which began operations in 2016, operates in the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait. The exchange has processed over $6 billion in trading volume and raised more than $40 million in venture capital. Last year, BitOasis had its operational license suspended by Dubai’s Virtual Assets Regulatory Authority (VARA) due to regulatory non-compliance, but it has since been reinstated. The exchange has also obtained a license from the Central Bank of Bahrain.

Despite the license suspension, BitOasis continued to serve existing clients and has experienced significant growth. The exchange's average monthly trading volume has doubled in the past six months, and assets under custody have surpassed $210 million. With over 750,000 users, BitOasis has seen most of its $6 billion trading volume accumulated in the last 18 months.

Following the acquisition, BitOasis will maintain its brand and leadership team. Gupta anticipates that BitOasis could contribute an additional $30 million to $50 million in annual revenue for CoinDCX. CoinDCX, which launched in 2018 and achieved unicorn status in 2021, faced revenue declines due to India's new tax regime on crypto transactions. In contrast, the UAE's lack of such taxes continues to drive trading activity there.

The crypto sector is seeing a resurgence in mergers, acquisitions, and initial public offerings, with Bitcoin’s value tripling since the start of 2023 as the market recovers from a downturn.

Source - https://www.bloomberg.com/news/articles/2024-07-03/india-crypto-exchange-coindcx-buys-bitoasis-in-mideast-expansion