Coinbase (COIN) Asian Market Expansion Strategy
US cryptocurrency exchange Coinbase announced on the 16th that it has re-entered the Indian market with a new investment in leading Indian exchange CoinDCX. This investment values CoinDCX at approximately $2.45 billion (KRW 3.479 trillion).Coinbase plans to use this investment to strengthen its regulatory compliance capabilities and build a secure trading infrastructure in India. Founded in 2018, CoinDCX has become one of India's largest cryptocurrency trading platforms, boasting over 15 million users and offering a variety of services, including staking, lending, and educational initiatives.
Coinbase briefly entered India in April 2022, launching a trading service linked to the UPI payment network, but halted the service due to regulatory opposition. This investment decision reflects Coinbase Ventures' previous experience participating in the market and the evolving regulatory environment.
India boasts over 100 million cryptocurrency holders, but its regulations are stringent, with a 30% tax on trading profits and a 1% trading deduction. Coinbase's investment is part of its Asia-Pacific expansion strategy, which includes securing a Singapore license and resuming operations in Japan.
This deal marks Coinbase's first substantial entry into the Indian market, as global exchanges compete to enter the market while complying with regulations.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr