Indian crypto unicorn CoinDCX, plans IPO when government regulations allow it
CoinDCX, India's largest cryptocurrency exchange, does not plan to go public in the near future due to uncertainty in the regulatory environment. CoinDCX does not have a "precise timeline" as to when an initial public offering might take place.
CoinDCX raised $90 million in a Series C funding round, the investments coming from Eduardo Saverin's B Capital Group. As a result, it was valued at over $1.1 billion, becoming India's first crypto unicorn.
According to its co-founder Neeraj Khandelwal in an interview with Bloomberg Television Monday, the share sale would be a major vote of confidence for India's digital asset market similar to Coinbase Global Inc.'s American listing earlier this year.
“As soon as the government or the situations allow us, we will try for an IPO,” Khandelwal said.
“An IPO gives a legitimacy to the industry, just like the Coinbase IPO gave a lot of confidence in the crypto markets. Similarly, we want to instill a similar level of confidence with an IPO of CoinDCX.” Khandelwal Said.
Despite the government's ambivalence on crypto regulations following several high-profile meetings, CoinDCX is looking to expand its operations.
India's Prime Minister Narendra Modi led a meeting on digital currency earlier this month, ultimately deciding that India will continue to engage with the industry proactively.
Although, the government announced plans to discourage cryptocurrency trading with steep capital gains taxes and other taxes. While it will ban most private cryptocurrencies in favor of a central bank digital currency (CBDC).
Local reports state that Nirmala Sitharaman, India's finance minister, announced that India does not plan to recognize Bitcoin (BTC) as a currency, adding that the government is not collecting data on Bitcoin transactions.
A ban on crypto transactions was implemented in India in 2018 but was overturned by the Supreme Court last year.
At the beginning of this year, a number of supposedly government-connected sources stirred fears that Indian authorities were planning to outlaw cryptocurrency in its entirety.
CBW - External Analyst