Coinbase Nears Deal to Snap Up CoinDCX at Sub-$1B Valuation – A Bargain or Strategic Play?

Coinbase is circling India's crypto crown jewel—but not at peak prices. The exchange giant's advanced talks to acquire CoinDCX come with a valuation under $1B, signaling either a market cool-down or a masterstroke in emerging market expansion.

Why it matters: This isn't just another acquisition. It's a high-stakes bet on India's crypto future while the sector licks its wounds from last year's regulatory battles.

The fine print: That sub-billion tag looks conservative compared to CoinDCX's 2021 peak valuation. Either Coinbase knows something we don't, or they're getting a post-crypto-winter fire sale (classic Wall Street move—buy when there's blood in the streets).

What's next: If sealed, this deal could give Coinbase instant dominance in the world's second-most populous nation. Unless local regulators decide to play spoiler—again.

Coinbase Prepares to Roll Out Retail Crypto Trading in India

Coinbase initially launched in India in April 2022 but quickly halted UPI payments and trading services amid RBI pressure. Though it officially halted services for Indian users on Sept. 25, 2023, Coinbase did not signal a full exit from the market.

@coinbase is eyeing a re-entry into India following a year-long hiatus, with early engagement with key regulators underway.#Coinbase #India https://t.co/FWS5Og6QJS

Following the FIU registration in March, Coinbase has officially received the nod to resume crypto trading services in India.

“We have a bold mission to increase economic freedom globally, and continuously explore opportunities around the world to build, buy, partner, and invest to accelerate our roadmap,” a Coinbase spokesperson told Livemint, declining to comment on the acquisition rumors.

Further, Coinbase is reportedly considering combining its stakes in both CoinDCX and CoinSwitch, which is “likely” but not confirmed yet.

“We don’t have active conversations in this regard at this time,” CoinSwitch co-founder Ashish Singhal confirmed.

CoinDCX Intends to Rebuild Trust Post Crypto Hack

On July 19, the Indian crypto platform suffered a massive security breach, resulting in crypto losses of $44 million. The hack occurred on an internal account used to provide liquidity to customers. CoinDCX assured that customer funds remain safe.

Cybersecurity experts reported that the incident is linked to the infamous North Korean Lazarus Group and follows the same exploit pattern as WazirX heist last year, resulting in a loss of $234 million.

CoinDCX later announced a recovery bounty program where up to 25% of any recovered funds will be awarded to those who help trace and retrieve the stolen crypto. The bounty could amount to as much as $11 million.