India's largest crypto exchange, CoinDCX, has acquired BitOasis, a cryptocurrency trading company based in the United Arab Emirates (UAE), in its first expansion into the Middle East and North Africa (MENA) region for an undisclosed amount.
The two firms started working together last year when CoinDCX invested in BitOasis. CoinDCX noted that BitOasis has a Bahrain license and Dubai expertise, paving the way for development, according to Gadgets360.
Based on its six years of operations in India, where it has registered with the Financial Intelligence Unit, CoinDCX co-founder Sumit Gupta told CoinTelegraph that the company was prepared to pursue a compliance-first strategy in MENA.
Gupta remarked in his post that his firm has distinguished itself "with unwavering compliance and investor protection" in India and stressed that CoinDCX maintains "the same standards" wherever it operates.
Retail, institutional, and high-net-worth crypto investors trade over 60 cryptocurrencies on BitOasis, founded in 2016. This platform has processed over $6 billion in trade volume and raised over $40 million from investors.
BitOasis was the first crypto platform to register with the UAE Financial Intelligence Unit in 2021. BitOasis co-founder and CEO Ola Doudin is optimistic that the acquisition will accelerate the company's growth.
They also expect it will lead to a "wider product portfolio, improved crypto services, access to more coins, liquidity, trading choices, and user experience."
No Migration in CoinDCX and BitOasis Accounts
CoinDCX's acquisition of BitOasis aims to enhance user experience on both platforms by expanding product offerings, trading options, and token alternatives.
Gupta told CoinTelegraph that there would be no connection between BitOasis and CoinDCX user accounts, adding that "BitOasis' privacy policy and applicable laws and regulations will safeguard user's personal data."
He noted that BitOasis will continue to operate independently under its existing licenses, "supervised by the relevant regulatory authorities." This year, Gupta launched a $1 million fund to help investors switch to CoinDCX from non-compliant platforms.
This project addresses regulatory developments and concerns among Indian investors, who have spent $4 billion on offshore bitcoin exchanges. These users benefit from CoinDCX's safe deposit methods and 1% incentive for moving funds to the licensed exchange.
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India Faces Crypto Concerns
CoinDCX's MENA growth coincides with India's cryptocurrency regulatory issues. TechCrunch reported that India is one of the least crypto-friendly nations since the central bank pressures lenders to shun crypto companies.
The country imposes a 30% tax on digital asset profits. Due to strict regulations and a market slowdown, major Indian crypto firms are pursuing new development tactics. CoinDCX began a decentralized exchange in 2022 and is expanding.
CoinSwitch Kuber, another major Indian crypto company and CoinDCX competitor, expanded into stocks and mutual funds over the past year. B Capital, Coinbase, Pantera, and Steadview funded CoinDCX in 2022, valuing it at $2.1 billion.
The recent suspension of Binance and more than half a dozen other foreign crypto exchanges for violating local anti-money laundering laws has benefited Indian exchanges. Many exchanges, including Binance, are working with Indian authorities to comply and will restart operations soon.
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