CoinDCX, a cryptocurrency exchange, has acquired BitOasis, a virtual asset trading platform operating in the Middle East and North Africa (MENA) region. The acquisition marks CoinDCX’s entry into the MENA market and signifies its strategic expansion.
BitOasis is known for its significant trading volume in the Emirati dirham, representing a major move for CoinDCX to strengthen its operations in the region.
Recently, BitOasis obtained the lowest viable product operational license from the Central Bank of Bahrain’s Virtual Asset Regulatory Authority. This license allows BitOasis to operate as a brokerage under strict regulation, ensuring compliance in financial, banking, investment, and insurance areas.
Sumit Gupta, co-founder of CoinDCX, clarified that BitOasis will operate independently under its existing license and will be subject to regulation. The acquisition is expected to enhance user experience on both platforms, providing a wider range of products and expanded trading options.
In response to the long-term decline in the cryptocurrency market and challenging macroeconomic conditions, CoinDCX announced layoffs affecting approximately 12% of its employees last year.
Similar to other exchanges like KuCoin, Luno, and Gemini, CoinDCX attributed these layoffs to high inflation and the so-called “cryptocurrency winter,” a prolonged period of low prices. Additionally, the impact of India’s Tax Deducted at Source (TDS) regulations on cryptocurrency trading has posed a significant challenge. The TDS regulations aim to tax income directly at the source, applying a 1% TDS to cryptocurrency transactions starting from July 2022.
As part of its long-term business strategy, CoinDCX implemented cost optimization, increased automation, and simplified product offerings in response to these challenges.
The laid-off employees will receive a comprehensive support package, including a one-month notice period, severance pay, settlement of accrued leave, and extended medical insurance.
