TLDR
- CoinDCX now valued at $2.45B after Coinbase’s biggest India investment to date.
- CoinDCX serves over 20M users and holds $1.2B in assets under custody.
- Coinbase may soon introduce regulated crypto ETFs to the Indian market.
- India’s 30% crypto tax and 1% levy remain key hurdles for global exchanges.
Coinbase has made its largest investment in India to date by backing CoinDCX at a $2.45 billion valuation. The move signals the U.S.-based exchange’s growing interest in India’s expanding digital asset sector, where millions of users are joining the crypto economy despite regulatory challenges and high taxation. The partnership aims to strengthen CoinDCX’s position and pave the way for regulated crypto investment products in the country.
Coinbase Expands Presence in India
Coinbase announced its latest investment in CoinDCX through a blog post on October 15, confirming a valuation of $2.45 billion for the Indian exchange. This development marks another chapter in Coinbase’s ongoing association with CoinDCX, which began in 2020. The American firm had earlier joined a $135 million funding round in 2022 that valued CoinDCX at $2.15 billion.
CoinDCX has since expanded its user base to over 20 million people and reported $141 million in annual revenue. The exchange now holds around $1.2 billion in assets under custody, reflecting growing local participation in the crypto market. The new investment, however, remains subject to regulatory approval in India, where strict tax policies have posed hurdles for global exchanges.
Regulatory Environment and Market Challenges
India’s current crypto framework includes a 30% flat tax on profits and a 1% levy on each transaction. These rules have made trading more complex and reduced liquidity in the domestic market. Despite this, Coinbase continues to see India as a crucial growth destination due to its large internet user base and increasing digital adoption.
Brian Armstrong, CEO of Coinbase, said, “There’s rapid tech adoption in India and the Middle East, and already 100M+ crypto holders. We are excited to do more in these markets and help to keep accelerating adoption. Coinbase is going global.” His remarks emphasize the company’s intention to strengthen its role in emerging regions with high growth potential.
CoinDCX Sees Move as a Boost to Confidence
CoinDCX’s co-founders, Sumit Gupta and Neeraj Khandelwal, welcomed the investment as a strong expression of trust in India’s evolving crypto sector. They stated that the company remains focused on maintaining transparency, promoting innovation, and enhancing user education. The exchange plans to continue developing secure platforms that cater to both Indian and global customers.
This announcement follows CoinDCX’s swift response to a $44.2 million hack in July, which it resolved using its reserves. The company denied any acquisition talks and reaffirmed its commitment to independent operations. The latest investment, they said, strengthens their mission to build trusted crypto services for the growing investor base in India.
Possible Launch of Crypto ETFs in India
Industry observers note that Coinbase’s renewed interest may lead to the introduction of regulated crypto exchange-traded funds (ETFs) in India. The U.S. Securities and Exchange Commission and several global regulators have recently approved similar products, increasing demand among institutional and retail investors.
The potential entry of crypto ETFs in India could give investors safer and more transparent exposure to digital assets. With regulatory discussions gaining momentum and Coinbase’s involvement deepening, analysts believe this move could help bridge traditional finance with digital markets in the region.
As Coinbase strengthens its partnership with CoinDCX, the investment marks a major step in the evolution of India’s crypto industry and reflects growing international confidence in the country’s digital asset landscape.
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