CoinDCX, an Indian cryptocurrency exchange, announced on Tuesday that it had raised $135 million in its most recent investment round. Pantera and Steadview, two tech-focused venture capital firms, led the round, which also included Kingsway, DraperDragon, and Republic.
CoinDCX now has a market capitalization of over $2 billion, making it India’s largest crypto exchange, according to a press statement. After a funding round conducted by B Capital Group in August 2021, the company was designated as a unicorn.
The increased financing will be used to triple the number of employees on the market to over 1000 by the end of the year, according to the exchange.
However, the action comes amid growing skepticism about the Indian government’s stance on cryptocurrency. The government’s introduction of a flat 30% tax on crypto earnings this year shows that it is attempting to discourage people from trading in the industry.
The country is still working on a comprehensive space policy. However, government officials have stated that India may impose additional restrictions.
As the tax took effect in April, CoinDCX, like most other Indian crypto exchanges, noticed a drop in trading volumes. 30 percent is one of the highest investment tax percentages, and it will be applied to all crypto gains, regardless of size.
The exchange’s daily volumes have dropped to a three-month low of $3.3 million, according to Nomics data.
Indian cryptocurrency exchanges have recently restricted deposits made through UPI, the country’s nationalized payments system. The decision was prompted by India’s payments regulator claiming that it was unaware of any crypto firms using UPI, emphasizing the regulatory ambiguity that local crypto firms confront.
The Reserve Bank of India has proposed a blanket ban on cryptocurrencies, describing them as a financial risk.
According to CoinDCX, India still has crypto potential. India’s crypto adoption has a lot of potentials, according to CoinDCX. It plans to cooperate with the government to improve anti-money laundering compliance and develop crypto-friendly legislation.