CoinDCX, a cryptocurrency exchange, has acquired BitOasis, a virtual asset trading platform operating in the Middle East and North Africa (MENA) region. This acquisition marks CoinDCX’s entry into the MENA market and signifies its strategic expansion.
The acquisition enhances the outlook for cryptocurrencies. BitOasis is known for its significant trading volume in the UAE dirham, representing a major move for CoinDCX to strengthen its presence in the region.
BitOasis recently obtained the minimum viable product operational license from the Virtual Asset Regulatory Authority of the Central Bank of Bahrain. This license allows BitOasis to operate as a brokerage under rigorous regulation, ensuring compliance in financial, banking, investment, and insurance sectors. CoinDCX co-founder Sumit Gupta clarified that BitOasis will operate independently under its existing license and will be regulated.
The acquisition is expected to enhance the user experience and broaden product offerings for both platforms. Gupta confirmed that user accounts on BitOasis and CoinDCX will remain independent, with no migration or linkage.
Finance Magnates reported that CoinDCX announced staff layoffs last year, affecting approximately 12% of its employees. This decision was attributed to the prolonged downturn in the cryptocurrency market exacerbating challenging macroeconomic conditions. Similar to other exchanges such as KuCoin, Luno, and Gemini, CoinDCX attributed these layoffs to high inflation and the so-called “cryptocurrency winter,” a sustained period of low prices.
In addition to these challenges, there is a significant issue with the impact of India’s Tax Deducted at Source (TDS) regulations on cryptocurrency trading, aiming to tax income directly at the source. Since July 2022, a 1% TDS applies to cryptocurrency transactions, negatively affecting domestic trading volume and revenue.
In response, CoinDCX implemented cost optimizations, increased automation, and simplified product offerings as part of its long-term business strategy.
The laid-off employees will receive a comprehensive support package, including the equivalent of their full notice period plus one month’s severance pay, the settlement of accrued leave, and extended health insurance.