Coinbase Backs India's $2.45B Crypto Exchange Despite Security Breach and Uncertain Rules

U.S. cryptocurrency exchange Coinbase has deepened its commitment to India's digital asset ecosystem by increasing its investment in CoinDCX, a leading Indian crypto platform, valuing the exchange at $2.45 billion post-money. The move, announced Wednesday, underscores Coinbase's confidence in India's crypto potential despite regulatory uncertainties and recent security challenges. The investment builds on prior funding from Coinbase Ventures, which first backed CoinDCX in 2020.

The latest capital infusion, though not disclosing specific financial terms, raises CoinDCX's valuation from $2.15 billion in April 2022. Coinbase's Chief Business Officer, Shan Aggarwal, emphasized the strategic importance of India and the Middle East and North Africa (MENA) region, stating, "These markets will help shape the future of the global onchain economy". CoinDCX, which reported $141 million in annualized revenue and $1.2 billion in assets under custody as of July 2025, has expanded beyond India into the MENA region via its 2024 acquisition of BitOasis.

The investment arrives months after CoinDCX suffered a $44 million security breach in July, attributed to a sophisticated server-side attack that compromised an internal liquidity wallet. While the exchange absorbed the loss from its treasury and confirmed no customer funds were affected, the incident prompted a overhaul of security protocols. CoinDCX CEO Sumit Gupta noted the breach had "strengthened our conviction in their team and platform".

India's crypto market remains a high-stakes arena for global players. The country imposes a 30% tax on crypto gains and a 1% transaction levy, while regulatory clarity lags. Over 25 international exchanges, including BingX and LBank, recently faced scrutiny for noncompliance. Coinbase, which re-entered India earlier this year by registering with the Financial Intelligence Unit, has also invested in rival platform CoinSwitch.

The partnership with CoinDCX allows Coinbase to leverage the Indian exchange's 20.4 million users and its regulatory foothold in India and the UAE. For CoinDCX, the backing from a globally recognized compliant-first exchange enhances its credibility and expansion ambitions. "We see strong synergies with Coinbase in building a regulatory-friendly crypto ecosystem," Gupta said.

Coinbase's strategy aligns with broader trends in the crypto industry, where U.S. firms are pivoting to emerging markets amid domestic regulatory pressures. The SEC's ongoing enforcement actions against crypto platforms have pushed companies to prioritize regions with growing adoption and less restrictive oversight. India and the MENA region, with over 100 million crypto users combined, represent a key growth corridor.

The investment is subject to regulatory approvals and customary closing conditions. If finalized, it will further solidify Coinbase's presence in a market where U.S. tech giants see vast potential-but also significant hurdles. For now, CoinDCX's ability to navigate security threats and regulatory complexity positions it as a critical player in the global crypto landscape.

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: [1] Coinbase boosts investment in India's CoinDCX, valuing exchange at 2.45b (https://techcrunch.com/2025/10/14/coinbase-boosts-investment-in-indias-coindcx-valuing-exchange-at-2-45b/)

[2] CoinDCX secures new funding from Coinbase, valuation hits $2.45... (https://economictimes.indiatimes.com/markets/cryptocurrency/coinbase-invests-in-indian-crypto-exchange-coindcx-at-2-45-billion-valuation/articleshow/124567951.cms)

[3] US-based Coinbase doubles down on CoinDCX with new investment (https://yourstory.com/2025/10/coinbase-doubles-coindcx-investment)

[4] CoinDCX valued at $2.45Bn after fresh Coinbase investment (https://thetechportal.com/2025/10/15/coindcx-valued-at-2-45bn-after-fresh-coinbase-investment/)

[5] Coinbase makes investment in CoinDCX: Expanding our... (https://www.coinbase.com/blog/Coinbase-makes-investment-in-CoinDCX-expanding-our-commitment-to-India-and-the-Middle-Easts-crypto-future)

[6] Coinbase Acquires CoinDCX to Access 100M+ Crypto Owners in... (https://www.banklesstimes.com/articles/2025/10/15/coinbase-acquires-coindcx-to-access-100m-crypto-owners-in-india-and-the-middle-east/)

[7] CoinDCX Hack: How Attackers Stole $44M Without... (https://cointelegraph.com/explained/how-hackers-stole-44m-from-coindcx-without-touching-user-wallets)

[8] CoinDCX Hack Breakdown: How $44 Million Vanished... (https://coincodex.com/article/70899/coindcx-hack/)

[9] CoinDCX hit by major cyberattack, $44 mn drained: All... (https://www.business-standard.com/markets/cryptocurrency/coindcx-cyberattack-44-million-customer-funds-portfolio-affected-125072000147_1.html)

[10] Hack Track: Inside the CoinDCX Exploit (https://www.merklescience.com/blog/hack-track-inside-the-coindcx-exploit)

[11] CoinDCX Hack: $44 Million Lost in Server Breach, User Funds... (https://thereviewhive.blog/coindcx-hack-44m-loss-2025/)

[12] Crypto News Today: Coinbase to Increase Its Investment in Indian... (https://www.coindesk.com/markets/2025/10/15/coinbase-to-increase-investment-in-one-of-india-s-largest-crypto-exchanges)

[14] Coinbase to Invest in India's CoinDCX, Expand in South Asia (https://decrypt.co/344337/coinbase-coindcx-expand-south-asia-middle-east)