Coinbase Seeks to Acquire Stake in DCX Global
US-based Coinbase has filed with India’s Competition Commission (CCI) to buy a minority stake in DCX Global. DCX Global is the parent company of CoinDCX, a major Indian crypto exchange. The filing was made under merger regulations, requiring disclosure of such investments.
The exact financial terms have not been disclosed. Coinbase stated the deal raises no competition concerns in India’s crypto market. DCX Global is registered in Mauritius and owns CoinDCX’s technology and intellectual property. CoinDCX operates in India through Neblio Technologies Pvt. Ltd.
CoinDCX Plans Expansion with New Funding
The latest funding will support CoinDCX’s product expansion and new blockchain use cases for Indian users. It will also fuel its global growth. Last month, CoinDCX raised funds valuing the company at $2.45 billion. Coinbase previously invested in 2022, acquiring a 2.34% stake when CoinDCX was valued at $2.15 billion.
CoinDCX expanded to West Asia and North Africa last year by acquiring BitOasis. The CCI filing treats Coinbase, DCX, and Neblio as relevant parties. The competition review covers crypto exchanges operating in India. Coinbase argues this stake purchase will not impact competition in the sector.
Coinbase’s Return to India Market
In 2022, Coinbase briefly launched UPI-based crypto buying but stopped due to regulatory pressure. It blocked UPI payments completely and closed inactive Indian accounts. Now, Coinbase is registering with India’s Financial Intelligence Unit (FIU) to resume trading legally.
Registration with the FIU is mandatory for crypto exchanges in India to comply with anti-money laundering and KYC regulations. Coinbase plans to restart retail trading and introduce new products later this year, though no launch date is confirmed.
Coinbase is also focusing on blockchain development and security in India. Chief Legal Officer Paul Grewal recently met Karnataka’s IT Minister Priyank Kharge. They discussed collaboration on blockchain, cybersecurity, developer training, hackathons, and supporting local builders.
India remains cautious on cryptocurrency. While not illegal, crypto trading is regulated with tax rules to prevent misuse and ensure compliance.
