India’s competition regulator approves Coinbase minority stake in CoinDCX

The Competition Commission of India, which oversees and promotes fair competition in the country, has cleared Coinbase’s acquisition of a minority stake in cryptocurrency platform CoinDCX. 

In a notice released, the regulator confirmed its approval of Coinbase Global’s investment in DCX Global Limited, the parent company of CoinDCX. Coinbase Chief Legal Officer Paul Grewal shared the update on X Wednesday, stating that the move strengthens the exchange’s “long-term partnership with one of India’s most established and trusted digital asset platforms.”

Both the regulator’s announcement and Grewal’s post omitted the exact percentage of Coinbase’s stake in the crypto exchange. Reporters contacted a Coinbase spokesperson for comment, but had not received a response by the time of publication.

The approval follows an October notice that Coinbase was planning to invest in CoinDCX with a post-money valuation of approximately $2.4 billion. At that time, Coinbase reported that CoinDCX had about $141 million in annual revenue as of July; however, it denied earlier reports that it was planning to purchase the company outright for $1 billion.

Coinbase returns to Indian crypto market

After a pause of more than two years, Coinbase has opened its app for registration in India. Currently, users can make crypto-to-crypto trades. However, speaking at India Blockchain Week (IBW), Coinbase’s APAC director, John O’Loghlen, stated that the company plans to introduce a fiat on-ramp in 2026, enabling users in the country to load money and purchase crypto.

Coinbase opened its services in India in 2022, but within days, it had to shut down support for the Unified Payments Interface (UPI) payment network. This move followed the UPI operator National Payments Corporation of India’s (NPCI) refusal to acknowledge Coinbase’s presence in the country. Later in 2023, Coinbase ceased all operations for Indian users and requested that they close their accounts.

“We had millions of customers in India, historically, and we took a very clear stance to off-board those customers entirely from overseas entities, where they were domiciled and regulated. Because we wanted to kind of burn the boats [sic], have a clean slate here. As a commercial business person wanting to make money and active users, that’s like the worst thing you can do, and so you know it wasn’t without some hesitation,” O’Loghlen said.

Coinbase navigates regulations and tax challenges while expanding in India

The company began engaging with the Financial Intelligence Unit (FIU), a government agency responsible for overseeing transactions and combating fraud, and eventually registered with them this year. In October, the app began onboarding users through early access, and it is now open to all users.

Many internet companies have established their bases in India, aiming to tap into the world’s second-largest online user base. While social platforms and AI companies like OpenAI have experienced rapid growth in the market, it has been challenging for crypto companies to follow the same path due to the strict regulations and taxation surrounding cryptocurrencies.

The South Asian country imposes a 30% tax on crypto income without any loss offset, and also charges a 1% deduction on each transaction, which may deter users from trading frequently. O’Loghlen said that the company hopes that the government will relax the taxation to make it less burdensome for people to hold digital assets.

Despite these hurdles, Coinbase remains optimistic about the Indian market. Its venture arm recently increased its investment in local exchange CoinDCX, which has a post-money valuation of $2.45 billion. The company plans to expand its employee base of over 500 in the country by hiring for multiple roles serving both domestic and global markets.

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