Key takeout
- Coinbase is undergoing high consultations to acquire Coindcx, India’s largest crypto exchange.
- CoindCX ratings fell below $1 billion after a $44 million breach.
Coinbase is reportedly in advanced negotiations with CoindCX, one of India’s largest crypto exchanges over a potential acquisition agreement that could strengthen its foothold in this emerging market.
According to the Indian publication Livemint, CoindCX will be able to win under $1 billion on upcoming contracts.
If confirmed, the acquisition will further expand Coinbase’s purchase push this year. Following the $2.9 billion acquisition of Deribit, the company snapped three crypto startups to expand its trading and infrastructure stack. They are rikifi, spindles, iron fish.
CEO Brian Armstrong said in a statement that Coinbase is actively considering M&A deals and is ready to spend more if it meets the right one.
In March, the US major exchange secured a license from the Indian Financial Information Unit, aiming to re-enter the market after its short release in 2022 was cut short by regulatory hurdles.
Consultations will be held as CoindCX recovered from a recent $44 million security breaches targeting internal liquidity wallets earlier this month.
CEO Sumit Gupta said that customer funds are not affected as customer funds remain refrigerated. The losses are covered by the Ministry of Finance, a company with increased security measures and recovery efforts.