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CoinDCX Expands Globally with BitOasis Acquisition in MENA Region

Posted on by darion

According to a statement on Wednesday, June 3, CoinDCX has acquired Dubai-based BitOasis, signaling its first venture into the Middle East and North Africa (MENA) region, furthering the growing influence of Indian cryptocurrency exchanges on the international stage. The acquisition gives CoinDCX a powerful foothold in the MENA region, serving a diverse group of retail and institutional clients.

The deal comes as Dubai seeks to establish itself as a cryptocurrency hub. According to a report by Chainalysis, the region’s cryptocurrency market grew by 150% from 2021 to 2022, with the UAE leading the charge. CoinDCX co-founder Sumit Gupta said the company is targeting regions with clear regulatory frameworks for cryptocurrency operators to expand through mergers and acquisitions.

Background and Significance

CoinDCX, a leading cryptocurrency exchange in India, previously invested in BitOasis, making this acquisition a natural progression. While the terms of the deal remain undisclosed, the move is in line with CoinDCX’s expansion strategy to target regions with clear regulatory frameworks for cryptocurrency operators outside its home territory. Dubai, competing with Singapore and Hong Kong, aims to cement its position as a cryptocurrency business hub.

Spotlights on BitOasis

Launched in 2016, BitOasis operates in the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait. Throughout its existence, the exchange has processed over $6 billion in trading volume and secured over $40 million in venture capital funding from investors. Despite the temporary suspension of its “Minimum Viable Product Operating License” by the Virtual Asset Regulatory Authority (VARA) in Dubai, BitOasis regained its license, allowing it to reopen its platform to new retail and institutional users. In addition, the exchange has obtained a license from the Central Bank of Bahrain.

Steady growth and customer base

BitOasis boasts over 750,000 customers, with the majority of its $6 billion in trading volume generated in the last 18 months. Despite the license suspension, existing customers have remained loyal, with the exchange’s average monthly trading volume increasing by over 100%. BitOasis currently has over $210 million in assets under management.

CoinDCX’s ambitious goals

Founded in 2018, CoinDCX became India’s first crypto unicorn (a private startup valued at over $1 billion) in 2021. However, the company faced revenue challenges after India introduced a tax regime in 2022, imposing a 1% tax on crypto transactions and a flat 30% fee on crypto-related profits. This regulatory hurdle prompted CoinDCX to explore international expansion, with the acquisition of BitOasis serving as a strategic entry point into the MENA market.

The acquisition will not change the BitOasis brand or leadership team. Ola Doudin, co-founder and CEO of BitOasis, will continue to lead the company. This continuity ensures that BitOasis customers can expect the same level of service and commitment they have come to appreciate.

Looking to the future

Based on current market conditions, CoinDCX estimates that BitOasis could generate an additional $30-50 million in annual revenue. The acquisition ensures the continuity of BitOasis, and its brand and management team remain unchanged. As the cryptocurrency landscape evolves, CoinDCX’s global ambitions aim to transform the industry by connecting India to MENA.