Key Highlights
- Coinbase has filed with the Competition Commission of India (CCI) to acquire a minority stake in DCX Global.
- The funding will help CoinDCX expand products, develop new blockchain use cases for Indian users, and support global growth.
- The deal is under review as Coinbase strengthens its India presence by registering with the Financial Intelligence Unit (FIU) to restart trading.
US-based cryptocurrency company Coinbase has approached India’s competition regulator, the CCI (Competition Commission of India), seeking approval to buy a minority stake in DCX Global, the parent company behind the Indian crypto exchange CoinDCX.
The filing was made under the merger regulations that require companies to disclose details of such transactions.
According to the submission, the deal involves Coinbase purchasing a small shareholding in DCX. While financial specifics of the investment haven’t been made public, Coinbase stated in the filing that the transaction does not pose any competition concerns in India’s crypto market.
Coinbase, incorporated in the United States, operates crypto-trading platforms in more than 100 countries and recently began operations in India. DCX, incorporated in Mauritius, owns the technology, branding, and intellectual property associated with the CoinDCX exchange. The platform itself is operated in India by Neblio Technologies Pvt. Ltd.
This move comes soon after CoinDCX’s latest funding round last month, which valued the company at $2.45 billion. Coinbase had earlier invested in 2022, acquiring a 2.34% stake when CoinDCX was valued at around $2.15 billion. The amount invested in the new stake has not been disclosed.
CoinDCX expansion under review
CoinDCX has said that recent funding will help it expand its products, develop new blockchain-based use cases for Indian users, and support its global expansion plans. Last year, the company also entered the West Asia and North Africa region by acquiring the crypto platform BitOasis.
For regulatory assessment, Coinbase, DCX, and Neblio have been treated as the relevant parties. The filing notes that while the CCI may define the market boundaries as it sees fit, the transaction can be reviewed within the broader “market for exchanges offering cryptocurrency in India.” Coinbase has argued that the proposed stake purchase will not affect competition in this space.
Coinbase’s comeback to India
Coinbase had earlier launched UPI-based crypto buying in 2022 but shut it down within days due to regulatory pressure, later blocking UPI completely and closing many inactive Indian accounts.
After nearly two years, the company is returning by registering with the FIU to legally restart trading services. Coinbase says it intends to reboot retail trading later this year and also release new products, though it has not announced a date.
The Financial Intelligence Unit (FIU) plays a key role in India’s crypto framework. Any crypto exchange operating in India must register with the FIU to offer trading services legally. The FIU ensures that every exchange follows anti-money laundering (AML) and know-your-customer (KYC) rules.
The company is not only focused on crypto trading but also looks to expand its work in blockchain development and security. The Chief Legal Officer at Coinbase, Paul Grewal, called on Karnataka IT Minister Priyank Kharge in Bengaluru to discuss potential collaboration between the two on blockchain, cybersecurity, and developer training, among other subjects.
They spoke about sharing tools, hosting hackathons, and supporting local builders, and Coinbase demonstrated its developer platform to make on-chain development easier.
Meanwhile, India has been cautious about cryptocurrency but is gradually adopting an evolving approach. While crypto is not illegal, the government has put in place regulations and tax rules to monitor trading and prevent misuse.
Also Read: Coinbase Moves to Texas from Delaware Amid State Rivalry
