India’s largest cryptocurrency exchange, CoinDCX, has acquired BitOasis, a virtual asset trading platform operating in the Middle East and North Africa (MENA) region.
The acquisition marks CoinDCX’s first step into the MENA market, revealing a more expansive move by the crypto firm.
BitOasis, known for having one of the highest trading volumes in Emirati dirhams, signifies a substantial strategic move by CoinDCX to expand its presence in the region.
Regulatory motivations
BitOasis recently secured a Virtual Assets Regulatory Authority (VARA)-issued Minimum Viable Product (MVP) Operational License from the Central Bank of Bahrain (CBB).
This license allows BitOasis to operate as a broker-dealer under strict regulatory conditions and ensures the platform’s operations are regulated and comply with legal parameters.
Speaking with Cointelegraph, Sumit Gupta, co-founder of CoinDCX, explained that BitOasis will continue to operate independently under its existing licenses, “supervised by the relevant regulatory authorities.”
User implications
The user experience on both platforms is anticipated to improve as the acquisition promises a broader product offering and increased trading and token range options.
Speaking with Gupta about the implications on user accounts, he explained that accounts would not be migrated or linked between BitOasis and CoinDCX.
“Users’ personal data will remain protected in line with BitOasis’ privacy policy and applicable law and regulation users’ assets and funds will remain fully segregated and kept safe in line with applicable regulatory requirements."
CoinDCX $1 million investor fund
In January, Gupta spoke with Cointelegraph about allocating a $1 million fund to assist investors seeking to transfer their assets from non-compliant platforms to CoinDCX.
With an estimated $4 billion invested in cryptocurrency on offshore exchanges by Indian investors, recent regulatory changes have sparked significant concern.
Gupta explained that CoinDCX was “actively supporting users” by establishing secure deposit routes and offering a 1% bonus to users looking to move to the regulated crypto exchange.