CoinDCX Expands Globally with Acquisition of BitOasis in MENA Region

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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, reinforcing the growing influence of Indian crypto exchanges on the global stage. The acquisition provides CoinDCX with a formidable foothold across MENA, catering to a diverse range of retail and institutional clients.

Proud to share the news that @bitoasis has been acquired by @CoinDCX. This is a big milestone for us at BitOasis and a first of its kind M&A deal for the crypto space in the Middle East! We've been the first platform to launch in the region, ushering the crypto adoption across… pic.twitter.com/uDk3fig14n
— Ola Doudin (@odoudin) July 3, 2024

The deal comes at a time when Dubai is striving to establish itself as a nexus for crypto businesses. According to a report by Chainalysis, the region’s crypto market grew by 150% from 2021 to 2022, with the UAE leading the charge. CoinDCX’s co-founder, Sumit Gupta, stated that the company is targeting regions with clear regulatory frameworks for crypto operators for expansion through mergers and acquisitions.

Background and Significance

CoinDCX, India’s leading cryptocurrency exchange, had previously invested in BitOasis, making this acquisition a natural progression. While the terms of the deal remain undisclosed, the move aligns with CoinDCX’s expansion strategy, targeting regions with clear regulatory frameworks for crypto operators beyond its home turf. Dubai, competing with Singapore and Hong Kong, aims to establish itself as a crypto business hub.

Spotlights on BitOasis

Launched in 2016, BitOasis operates in the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait. Over its lifespan, the exchange has processed over $6 billion in trading volume and secured over $40 million in venture funding from investors. Despite temporarily suspending its “minimum viable product operational license” by Dubai’s Virtual Assets Regulatory Authority (VARA), BitOasis regained its license, allowing it to reopen its platform for new retail and institutional users. Additionally, the exchange 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 trading volume generated in the past 18 months. Despite the license suspension, existing clients remained loyal, and the exchange’s average monthly trading volume increased by over 100%. Currently, BitOasis manages assets exceeding $210 million.

CoinDCX’s Ambitious Goals

CoinDCX, founded in 2018, 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% levy on crypto-related gains. This regulatory hurdle led CoinDCX to explore international expansion opportunities, with BitOasis’ acquisition serving as a strategic entry point into the MENA market.

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

Looking Ahead

Based on current market conditions, CoinDCX estimates that BitOasis could generate an additional $30 million to $50 million in annual revenue. The acquisition ensures BitOasis’s continuity, with its brand and leadership team remaining unchanged. As the crypto landscape evolves, CoinDCX’s global ambitions are set to reshape the industry, bridging the gap between India and MENA.

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